Imports of sunflower oil to India jumped by 28% in May

India’s imports of palm oil last month fell to 441,000 tons, down 14% from 510,094 tons in April, according to dealers’ average estimates. May imports were the lowest since February 2021, dealers added.

The reduction in purchases by the world’s largest oil importer could negatively affect palm oil prices, which are already trading near their lowest level in 30 months.

India buys palm oil mainly from Indonesia, Malaysia – the two largest producers – and Thailand, while it imports soybean and sunflower oil from Argentina, Brazil, Russia and Ukraine.

Price-sensitive Asian buyers typically rely on palm oil because of its low cost and fast delivery times.

But over the past few months, the edible oil has started selling at a premium to soybean and sunflower oil, prompting buyers to switch to cheaper soft oils, said Sandeep Bajoria, CEO of Sunvin Group, an oil brokerage and consulting firm, Reuters reports.

In April, for the first time in many years, buyers decided to abandon large purchases of palm oil for May deliveries.

According to the SEA Association, India’s average monthly palm oil imports in the first six months of the 2022/23 marketing year, which began on November 1, totaled 818,203 tons, up 52% from a year earlier. The trade body is likely to release its May import data by mid-June.

India’s sunflower oil imports jumped 28% month-on-month in May to 319,00 tons, while soybean oil imports rose 10% to 290,000 tons, according to the median estimate of dealers.

“Palm oil has been losing market share over the past few months and is unlikely to regain it unless it becomes competitive,” said Rajesh Patel, managing partner of GGN Research, an edible oils trader and broker.

Tags: sunflower oil, India, palm oil