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India's palm oil imports rose in March from the previous month but remained below normal levels for a fourth consecutive month, as its price premium over rival soyoil prompted refiners to step up soyoil purchases, five traders said.
The lower palm oil imports could pressure Malaysian palm oil prices while supporting US soyoil futures, as India is the world's largest importer of vegetable oils.
According to trade estimates, palm oil imports rose 13.2% in March to 423,000 tonnes compared with the previous month. Traders had expected at the start of March that imports would exceed 500,000 tonnes for the month.
The Solvent Extractors' Association of India said the country imported an average of more than 750,000 tonnes of palm oil per month during the marketing year that ended in October 2024, and is due to release March import data by mid-April.
Rajesh Patel, managing partner at edible oil trading firm GGN Research, said: "Palm oil was costlier than soyoil in the past few months, which is curbing base demand for the tropical oil."
Soyoil imports rose 24% in March to 352,000 tonnes from the previous month, while sunflower oil imports fell 15.5% to 193,000 tonnes, a six-month low, traders said.
The larger volumes of palm oil and soyoil shipments helped lift the country's total edible oil imports in March to 968,000 tonnes, up 9.3% from the previous month, which had seen a slide to a four-year low, according to trade estimates.
Sandeep Bajoria, chief executive of vegetable oil brokerage Sunvin Group, said: "Palm oil still holds a price premium over soyoil, even for shipments scheduled for April and May. That's why palm oil imports in April will also stay below 500,000 tonnes."
Bajoria noted that imports could start rising from May, with a sharp increase expected from July, when palm oil is likely to become price-competitive with soyoil.
India mainly imports palm oil from Indonesia and Malaysia, while it sources soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Source: Reuters