MARKET DEVELOPMENT
India August-October Edible Oil Imports May Rise
India August-October Edible Oil Imports May Rise
30/07/2013 (Wall Street Journal) - India's imports of cooking oil are expected to rise 15% from a year earlier in the last quarter of the marketing year ending Oct. 31 because of cheaper global prices during the peak demand period.
A rise in demand from India, the world's biggest buyer of edible oil, may provide support to global palm oil prices, which are subdued because of higher stocks in main producing countries. The South Asian nation imports more than half the edible oil it requires, with palm oil accounting for about 70% of total imports.
Prices India pays for imported palm oil have fallen by around 15% in the past year and are expected to drop further because of higher production in Indonesia and Malaysia, two of the world's largest suppliers of the cooking oil.
"Our domestic supplies will remain tight until the arrival of the new crop in October, but cheaper imported edible oils will likely fill the gap," said Laxmichand Aggarwal, president of the Central Organization for Oil Industry & Trade.
India imported about 2.9 million metric tons between August and October last year, according to data from the Solvent Extractors' Association of India. Festivals boost India's demand for cooking oil during the quarter.
Edible oil imports are likely to slow from November due to the arrival of the new crop, which is expected to be large because of higher sowing acreage and good monsoon rains, industry executives said.
A rise in demand from India, the world's biggest buyer of edible oil, may provide support to global palm oil prices, which are subdued because of higher stocks in main producing countries. The South Asian nation imports more than half the edible oil it requires, with palm oil accounting for about 70% of total imports.
Prices India pays for imported palm oil have fallen by around 15% in the past year and are expected to drop further because of higher production in Indonesia and Malaysia, two of the world's largest suppliers of the cooking oil.
"Our domestic supplies will remain tight until the arrival of the new crop in October, but cheaper imported edible oils will likely fill the gap," said Laxmichand Aggarwal, president of the Central Organization for Oil Industry & Trade.
India imported about 2.9 million metric tons between August and October last year, according to data from the Solvent Extractors' Association of India. Festivals boost India's demand for cooking oil during the quarter.
Edible oil imports are likely to slow from November due to the arrival of the new crop, which is expected to be large because of higher sowing acreage and good monsoon rains, industry executives said.