India’s palm oil imports declined 24.29% month-on-month (m/m) in April, reaching 321,446 metric tons, according to the Solvent Extractors’ Association of India (SEA). The drop marks the fifth consecutive month of below-normal palm oil imports, as buyers shifted preference to cheaper alternatives like soybean oil.
Key Market Trends:
- Palm Oil Imports: Fell 24.29% m/m to 321,446 metric tons.
- Soybean Oil Imports: Increased 1.6% m/m to 360,984 metric tons.
- Sunflower Oil Imports: Declined 5.5% m/m to 180,128 metric tons.
- Total Edible Oil Imports: Dropped 11% m/m to 865,000 metric tons.
- Palm Oil Share: Reduced to 42%, down from 60% in the last six months.
Reasons Behind the Decline
The sharp fall in palm oil imports is attributed to higher prices compared to soybean oil, prompting traders to opt for cost-effective alternatives. Additionally, increased domestic mustard crushing has further reduced reliance on imported vegetable oils.
Future Outlook
Despite the decline, palm oil prices have started trading at a discount to soybean oil, which may lead to higher palm oil purchases in May. India, the world’s largest edible oil consumer, continues to source palm oil primarily from Indonesia and Malaysia, while soybean and sunflower oils are imported from Argentina, Brazil, Russia, and Ukraine.
Stay tuned for more updates on India’s edible oil market and global trade trends! 🚀
