Huge increase in import of palm oil and sunflower oil in May, import of soya oil decreased

05-Jun-2024 12:07 PM

Mumbai. Estimates made by industry and trade sector analysts show that the total import of edible oils increased to 15 lakh tonnes in May 2024, which is 2 lakh tonnes or 15 percent more than the import of 13 lakh tonnes in May 2023.

During this period, the total import of palm group oils increased by 12.4 percent from 6.85 lakh tonnes to 7.69 lakh tonnes and the import of sunflower oil jumped 74 percent from 2.34 lakh tonnes to 4.08 lakh tonnes.

The import of soyabean oil decreased by 16.5 percent from 3.75 lakh tonnes and got stuck at 3.22 lakh tonnes. In the palm oil category, the import of RBD palmolein jumped 57 percent from 1.24 lakh tonnes in May 2023 to 2.14 lakh tonnes in May 2024. For July 2024, the average price (cost) of arrival at Indian ports is being offered at $ 948 per tonne for crude palm oil (CPO), $ 1028 per tonne for crude soybean oil and $ 1035 per tonne for crude sunflower oil.

According to analysts in the industry and trade sector, the highest import of palm oil was done in May after January, while the pace of its import remained slow due to high prices in February, March and April.

In fact, when the price of palm oil came to a competitive level relative to other competing edible oils (soybean oil and sunflower oil), then the interest of Indian importers increased towards its purchase.

It is worth noting that in May 2024, the futures price of Malaysian palm oil fell to the lowest level in the last three months, but now it is expected to improve with the support of good purchases from India.

It is understood that traders (importers) got good margin on the import of refined palmolein in May, so they showed great enthusiasm in its import.

Two months ago, the price of palm oil was higher than soya oil and sunflower oil. According to a leading analyst, palm oil imports may remain at a high level of about 7.50 lakh tonnes in June as well.