India Boosts Palm Oil Imports as Prices Drop to 4-Month Low

  • 04 Jun 2024

As announced by government in June 2024, fuelled by a recent price correction, India, the world's largest vegetable oil importer, significantly increased its palm oil imports in May, reaching a four-month high.

Key Points

  • Import Increase: May palm oil imports surged 12.4% from April to 769,000 metric tons, the highest since January.
  • Price Impact: Lower palm oil prices, driven by a recent correction, enticed Indian refiners to increase purchases.
  • Market Support: India's buying spree could bolster benchmark Malaysian palm oil futures which hit a three-month low in May.
  • Palm Oil vs. Competitors: Crude palm oil is currently priced competitively at $948 per ton compared to soy oil and sunflower oil at $1,028 and $1,035 per ton, respectively.
  • Import Outlook: Palm oil imports are expected to remain strong in June with estimates suggesting around 750,000 tons to arrive in India.