India's palm oil imports surged 59% in October to a three-month high compared to the previous month, as refiners boosted purchases to replenish stocks depleted by lower-than-usual imports in recent months and strong festive demand, five dealers said.
Higher purchases by the world's biggest vegetable oils importer could lead to lower palm oil stocks in key producers Indonesia and Malaysia, supporting benchmark futures.
Palm oil imports jumped 59% in October from the previous month to 840,000 metric tons, according to estimates from dealers.
Demand for edible oils was robust during the festival season, prompting refiners to replenish their inventories, said Rajesh Patel, managing partner at GGN Research, an edible oil trader and broker.
Indians celebrated the Dussehra and Diwali festivals in the last few weeks, increasing the consumption of sweets and fried food.
Palm oil prices were competitive in August when many Indian buyers placed orders, said Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage.
Soyoil imports in October fell 10% from a month ago to 344,000 metric tons, while sunflower oil imports jumped 57% to 240,000 metric tons, dealers said.
Delayed sunflower oil shipments in September arrived in October, which is reflected in the import numbers, a Mumbai-based dealer said.
The rise in imports of palm oil and sunflower oil lifted the country's total edible oil imports in October by 34% to 1.42 million tons, as per dealers' estimates.
India buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Industry body the Solvent Extractors' Association of India (SEA) is likely to publish its data on October imports by mid-November.
Published - November 06, 2024 07:03 pm IST
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