India's Palm Oil Imports Soar to Four-Month High Amid Soyoil Decline

India's palm oil imports surged 51% in January to a four-month high due to price advantages over soyoil, which saw reduced imports. This shift impacts global markets by decreasing inventories in leading producers like Indonesia, benefiting Malaysian palm oil futures while affecting U.S. soyoil futures.

India's palm oil imports skyrocketed by 51% in January, reaching a four-month peak as the cost-effective pricing of palm oil prompted refiners to increase purchases while curbing soyoil imports to their lowest in 19 months, according to several dealers.

The boost in palm oil imports by India, the largest global buyer of vegetable oils, is anticipated to help reduce stocks in key producing countries, Indonesia and Malaysia, potentially lifting Malaysian palm oil futures and exerting pressure on U.S. soyoil futures. In January, palm oil imports rose to 766,000 metric tons from 507,204 metric tons in December, as estimated by traders.

Conversely, soyoil imports fell by 45% to 280,000 tons, marking a low not seen since June 2024, with sunflower oil imports also seeing a 23% decline to 269,000 tons. Total edible oil imports in India slipped by 3.5% from the previous month to 1.32 million tons, due to reduced soyoil and sunflower oil imports. These figures do not include duty-free shipments arriving via land from Nepal, the dealers noted.

(With inputs from agencies.)