India Palm Oil imports surge to 20-month high, causing port congestion

INDIA – India’s palm oil imports reached a seasonal high of 10.81 lakh tonne in July 2024, leading to port congestion and berthing delays of 8-10 days at Kandla port, according to the Solvent Extractors Association (SEA).

The increase in imports was driven by expectations for the upcoming festive season, resulting in a 20% surge in the third quarter (May-July) compared to the same period last year.

Palm oil made up 57% of the total vegetable oil imports, which stood at 18.95 lakh tonne in July, up from 17.71 lakh tonne a year ago.

The imports were marginally lower than 10.86 lakh tonne in July 2023.

According to SEA data, RBD palmolein imports fell to 1.36 lakh tonne from 2.37 lakh tonne year-on-year in July 2024, while crude palm oil imports rose to 9.36 lakh tonne from 8.41 lakh tonne. Crude palm kernel oil increased to 8,001 tonne from 7,457 tonne.

Among soft oils, sunflower oil imports rose to 3.66 lakh tonne from 3.27 lakh tonne, and soyabean oil imports were at 3.91 lakh tonne as against 3.42 lakh tonne in July 2023.

Total edible oil imports in July increased to 18.40 lakh tonne from 17.55 lakh tonne year-on-year, while non-edible oils were at 55,014 tonne as against 15,999 tonne.

Edible oil stocks as of August 1 were estimated at 29 lakh tonne, attributed to July’s high imports. For the first nine months of the current oil year, total vegetable oil imports were 121.24 lakh tonne, slightly below 122.54 lakh tonne in the same period last year.

India is the world’s largest importer and consumer of vegetable oils. The surge in imports, particularly of palm oil, will help reduce inventories in top producers Indonesia and Malaysia and support benchmark prices.

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