Wedoany.com Report-Nov. 17, In October, India’s palm oil imports dropped to a five-month low, as buyers shifted to soybean oil amid rising palm oil prices. Analysts said the decline could increase inventories in major producing countries Indonesia and Malaysia, potentially putting downward pressure on Malaysian palm oil futures.

Dealers estimated India’s palm oil imports fell 27.6% from September to 600,000 tonnes, the lowest since May. For the 2024/25 marketing year ending October, palm oil imports dropped 16% to 7.56 million tonnes, marking the lowest annual total in five years. Rajesh Patel, managing partner at GGN Research, noted that palm oil has lost market share to soybean oil after trading at a premium for several months.

Soybean oil imports fell 17.1% in October to 417,000 tonnes. However, total soybean oil imports for 2024/25 are expected to rise 61.6% to a record 5.56 million tonnes, reflecting a growing shift in demand. Sunflower oil imports also declined 6.4% in October to 255,000 tonnes, bringing total imports for the year to 2.88 million tonnes, down 17.7% from the previous year.

Overall, India’s total edible oil imports in October fell 20.7% year-on-year to 1.27 million tonnes, driven primarily by the decline in palm oil shipments. Dealers expect total edible oil imports in 2024/25 to reach around 16 million tonnes, a slight 0.3% increase from the previous year.

Sandeep Bajoria, executive director of Sunvin Group, a Mumbai-based edible oil brokerage, said the October decline reflected refiners’ anticipation of lower demand after the festive season rush.

India mainly sources palm oil from Indonesia and Malaysia, while soybean and sunflower oils are imported from Argentina, Brazil, Russia, and Ukraine. Previously, the price difference between Argentine and Black Sea sunflower oils reached $85 per tonne, influencing buying patterns.

The shift from palm oil to alternative oils highlights changing demand dynamics in India’s edible oil market. Traders and producers are closely monitoring the situation, as adjustments in import patterns can affect both domestic pricing and global commodity flows.

Despite the October decline, India’s edible oil sector continues to adapt to price fluctuations and supply chain considerations. Analysts suggest that imports of soybean oil will remain strong, while palm oil may regain market share depending on future price trends.

Overall, India’s edible oil import trends for 2024/25 indicate a careful balance between sourcing costs, seasonal demand, and global supply availability, with palm oil, soybean oil, and sunflower oil continuing to play key roles in meeting domestic consumption needs.