India’s July vegetable oil imports down 3 pct y/y

by Dave

UPDATE 1-| Reuters

India’s edible imports fell 3 percent in July from a year earlier, but are on course to remain in the range of 550,000-600,000 tonnes a month for the remaining three months of the oil year, a trade body said on Wednesday.

Imports by India, the world’s biggest buyer of vegetable oils after China, dropped to 532,456 tonnes in May from 548,908 a year earlier, the Solvent Extractors’ Association of India (SEA) said in a statement.

“Imports in July fell due to lower imports of soyoil after Argentina imposed an export duty of 42 percent,” said B.V. Mehta, executive director of the trade body.

A protest by farmers in Argentina led to the roll back of the duty last month.

India imports almost half of its annual consumption of around 11 million tonnes of vegetable oil, buying palm oil from Malaysia and Indonesia and soyoil from Brazil and Argentina.

Edible oil purchases in the first nine months of the season that began in November were at 3.63 million tonnes, against 3.29 million tonnes in the same period a year earlier, the body said.

Mehta said falling prices of cooking oils usually leads to an increase in demand but it was too early to gauge the impact as traders who had contracted at higher prices were in a tight spot.

In the last two months, crude palm oil, RBD palmolein and soybean oil prices have tumbled by about $350 per tonne and sunflower oil has crashed by $630 due to bearish trend in international market, the trade body said.