India's Palm Oil Imports Jump 74% In May Amid Strong Demand

Palm oil imports in India rose 74% to 7,63,300 tonne in May from 4,39,173 tonne in the year-ago period. The world's largest vegetable oil buyer stocked up the commodity to meet rising domestic demand, according to Solvent Extractors Association on Thursday. The total vegetable oil imports were around 10.58 lakh tonne in May 2023, which rose to 15.29 lakh tonne in May this year, it said. Palm oil contributes to a major part of imports.

Crude palm oil imports rose to 5,32,555 tonne in May this year from 3,48,118 tonne in the year-ago period, while RBD Palmolein imports surged to 2,25,746 tonne from 85,205 tonne. However, Crude Palm Kernel Oil imports fell to 4,999 tonne from 5,850 tonne a year earlier.

Sunflower oil imports climbed to 4,10,727 tonne from 2,95,206 tonne, and soybean oil rose to 3,24,016 tonne from 3,18,887 tonne.

For the first seven months of the 2023-24 marketing year started on Nov. 1, Palm oil imports fell to 49.77 lakh tonne from 53.48 lakh tonne in the year-ago period, while soybean oil imports were down at 85.67 lakh tonne against 90.55 lakh tonne in the said period.

As of June 1, India's edible oil stocks stood at 6,68,000 tonne.

Global edible oil prices surged last month due to supply disruptions in major exporters like Argentina, Brazil, Russia, and Ukraine, among others.

Rising soybean and sunflower oil prices boosted domestic mustard prices above the government's support level of Rs 5,650 per quintal, incentivising farmers to expand the oilseed area in the upcoming Kharif season, it added.

Indonesia and Malaysia are the major suppliers of refined palmolein and CPO to India, which mainly imports soy oil from Argentina and Brazil, and sunflower oil from Russia, Romania, Ukraine and Argentina.

(With inputs from PTI)