Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Fresh Produce

Top Palm Oil Buyer Cuts Imports First Time In A Year On Reserves

Palm oil purchases by India probably fell in December, the first decline in 2015, as record stockpiles in the world’s largest buyer prompted traders and refiners to slow shipments.

Imports dropped 7.9 per cent to 770,000 metric tons last month from a year earlier, according to the median of estimates from five processors and brokers compiled by Bloomberg. Total vegetable oil purchases, including soybean oil climbed 21 per cent to 1.38 million tons, the survey shows. The Solvent Extractors’ Association of India releases data in the middle of the month.

Stockpiles in India surged to an all-time high last month after traders boosted imports on concern that the first back-to- back shortfall in monsoon rain in three decades will shrink the oilseed harvest and worsen a cooking oil deficit. The country, which depends on overseas supplies to meet 70 percent of its needs, will still import 1.3 million tons to 1.5 million tons of vegetable oils each month for the next year, according to Sunvin Group, a Mumbai-based broker and consultant for oil and oilseed industry.

“Higher stocks at ports and in the pipeline by the end of November kept palm oil imports lower,” said Nagaraj Meda, managing director of Hyderabad-based TransGraph Consulting.

India buys palm oil from Indonesia and Malaysia and soybean oil from the U.S., Brazil and Argentina. Vegetable oil imports may climb to a record for a second year, increasing to 15.2 million tons in the 12 months that began 1 November from 14.6 million tons, Sandeep Bajoria, chief executive officer of Sunvin Group, said last month.

“Higher imports will continue because of low production and as farmers are also not selling their crop,” Ashok Sethia, a director at Sethia Oils Ltd., said by phone from Kolkata.

News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days