India's Edible Oil Imports Soar To Record 1.76 Million Metric Tonnes In July: Report

India, the largest importer of vegetable oils globally, increasing its purchase could reduce palm oil stocks in Indonesia and Malaysia and provide support to benchmark futures, as per the report.

According to the Solvent Extractors' Association of India (SEA), India's average monthly edible oil imports during the 2021-22 marketing year stood at 1.17 million tonnes, the news agency noted.  ( Image Source :Getty )

Edible oil imports in India surged to a record high of 1.76 million metric tonnes in July as refiners stockpiled supplies in preparation for upcoming festivals and uncertainty surrounding supplies from the Black Sea, reported Reuters citing dealers. Last month the country imported 1.3 million tonnes of edible oils. 

According to the Solvent Extractors' Association of India (SEA), India's average monthly edible oil imports during the 2021-22 marketing year stood at 1.17 million tonnes, the news agency noted. 

India, the largest importer of vegetable oils globally, increasing its purchase could reduce palm oil stocks in Indonesia and Malaysia and provide support to benchmark futures, as per the report. Additionally, it may strengthen soy oil futures and lead to a decrease in inventories in sunflower oil-producing countries in the Black Sea region.

According to average estimates from the dealers, Palm oil imports rose from 683,133 tonnes in June to 1.09 million tonnes in July, the highest in seven months. Sunflower oil imports rose by 73 per cent from June to 330,000 tonnes in July, the highest in six months. On the other hand while soy oil imports fell 22 per cent to 340,000 tonnes, dealers estimated.

Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage and consultancy firm, told Reuters that Palm oil's discount over soy oil and sunflower oil widened and prompted refiners to increase purchases for the upcoming festivals.

Because of the Russia-Ukraine crisis, importers are maintaining substantial oil reserves to ensure they are well-stocked and avoid any potential shortages, Rajesh Patel, managing partner at GGN Research, an edible oil trader and broker told the news agency.

India primarily imports palm oil from Indonesia, Malaysia, and Thailand. On the other hand, it purchases soy oil and sunflower oil from Argentina, Brazil, Russia, and Ukraine.

On another notable development, the Solvent Extractors Association of India (SEA) has urged the government to reconsider its decision to ban the export of de-oiled rice bran, arguing that the move is likely to have minimal impact on cattle feed and milk prices, as per a PTI report. The ban was issued by the Director General of Foreign Trade (DGFT) on July 28 and is in effect until November.