Significant upsurge in palm oil demand by refiners for upcoming festivals

Mumbai, Ta. September 24, 2019, Tuesday

Compared to July, palm oil imports in India increased by 5 percent in August this year and remained at a six-month high. The purchase by refiners has hit the market during the upcoming Diwali-Dussehra festive season, sources in the Solvent Extractors Association of India (C) said.

With the rise in the purchase of palm oil by India, its prices which have been under pressure for some time may be seen to improve.

India's palm oil imports stood at 9 tonnes in August, the highest since September 9, according to C data.

India's palm oil imports increased by 8.5 per cent to 1.8 lakh tonnes in the first six months of the marketing year. The marketing year for palm oil begins on November 1st.

India provides about 5% of its edible oil requirement through imports. The domestic production of edible oil is being forced to import as demand does not increase.

India imports most of palm oil from Indonesia and Malaysia, while Soyoil is imported from Brazil and Argentina. It is worth mentioning here that a report has been published in Indonesia that the Indian government will reduce import duty on refined, bleached and deodorized (RBD) Palmoline oil imported from Indonesia.

If Indonesia buys Indian sugar, it is being discussed that India has offered it in return. If this happens, the import of edible oils is likely to increase.