12/03/2014 (Bloomberg) - India’s imports of palm oil are forecast to slide for the first time in four years in the 2013-14 season on rising prices and as a record domestic rapeseed harvest boosts vegetable-oil supplies, Oil World wrote.

Indian palm oil imports may drop to 8.25 million metric tons in the season through September from 8.31 million tons in 2012-13, the Hamburg-based researcher wrote in an e-mailed report. Local vegetable oil production is forecast to rise.

Palm oil futures in Malaysia climbed 17 percent in the past 12 months, partly on concern dry weather will weigh on yields, while soybean-oil futures declined 13 percent in Chicago on an outlook for increased output in 2013-14.

“Indian palm oil purchases have slowed down significantly in recent weeks as the result of the deteriorated price competitiveness,” Oil World wrote. “In contrast, a sharp increase in soya oil imports is expected this quarter.”

Soybean oil imports are seen climbing to 1.35 million tons in 2013-14 from 1.14 million tons, Oil World wrote.

India’s domestic production of vegetable oils is predicted to rise to 9.86 million tons from 9.22 million tons, with local output of rapeseed oil climbing to 2.53 million tons from 2.26 million tons, according to the researcher.

Oil World predicted record domestic rapeseed production of 7.4 million to 7.5 million tons, compared with 7 million tons last year.