MARKET DEVELOPMENT
PREVIEW-India\'s Refined Palm Oil Imports Seen At Record in May
PREVIEW-India\'s Refined Palm Oil Imports Seen At Record in May
12/06/2013 (Reuters) - India's refined palm oil imports may have hit a record in May by jumping 31.5 percent from April, a Reuters survey showed, pushing total purchases of the tropical oil up for the first time since January on lower prices and tight domestic supplies.
The world's leading buyer of edible oils snatched up 333,333 tonnes of refined palm oil in May, the average of a survey of six traders showed, as its spread over the crude variant shrank to as low as $10 per tonne from around $20 in April.
The previous record was set in February 2012 when refined palm oil imports touched 304,048 tonnes.
Total palm oil imports in May should reach 770,833 tonnes, up 54.5 percent from the previous month, the survey showed.
Total palm oil imports hit an all-time high in January as top producers Indonesia and Malaysia made exports attractive by varying tax levels. But imports dropped for the next three months after India slapped a duty on crude palm oil.
"The duty structure favours refined palm oil imports," said K.K. Goel, a Delhi-based trader.
India buys mainly palm oils from Malaysia, Indonesia and a small quantity of soyoil from Brazil, Argentina.
India imports about 60 percent of its cooking oil demand of 17 million tonnes, with palm oil's share at about 80 percent. In 2011/12, India imported 10 million tonnes of cooking oil.
Imports of vegetable oils, including non-edible oils, rose 43.6 percent to 940,167 tonnes in May, reversing the downtrend since February, mainly due to the surge in palm oil imports.
Trade bodies have been asking for a rise in the duty on refined palm oil to safeguard the interests of local oilseed growers and refiners. But the Indian government is yet to pay any heed as inflation has only just reached comfortable levels.
Sliding Rupee To Dampen Imports?
Monthly soyoil imports are expected to rise 42.2 percent as local supplies are almost exhausted before the new planting season for soybean. Sunflower imports may have fallen by 11.7 percent as the expensive oil is used less in the hot season, when there are fewer feasts and festivals using fried foods.
Domestic cooking oil supplies decline during the summer season as planting of the main oilseed crop soybean takes place in June-July, while its harvesting takes place in October.
A slide in the rupee could turn the tide again in June, however.
"Imports in June could be around 880,000 tonnes as the weak value of the Indian currency is expected to make imports costlier," said R.K. Singhal, a Delhi-based trade analyst.
Imported refined palm oil is currently quoted at $860 per tonne on the country's west coast, while the delivered price for crude palm oil is $845 per tonne. The Indian rupee hit a record low at 58.7 against the dollar on Tuesday.
The survey showed average estimated stocks at Indian ports at the end of May fell 11 percent to 625,000 tonnes from April as refiners used old stocks.
The Mumbai-based Solvent Extractors' Association is expected to release its May import data this week.
The world's leading buyer of edible oils snatched up 333,333 tonnes of refined palm oil in May, the average of a survey of six traders showed, as its spread over the crude variant shrank to as low as $10 per tonne from around $20 in April.
The previous record was set in February 2012 when refined palm oil imports touched 304,048 tonnes.
Total palm oil imports in May should reach 770,833 tonnes, up 54.5 percent from the previous month, the survey showed.
Total palm oil imports hit an all-time high in January as top producers Indonesia and Malaysia made exports attractive by varying tax levels. But imports dropped for the next three months after India slapped a duty on crude palm oil.
"The duty structure favours refined palm oil imports," said K.K. Goel, a Delhi-based trader.
India buys mainly palm oils from Malaysia, Indonesia and a small quantity of soyoil from Brazil, Argentina.
India imports about 60 percent of its cooking oil demand of 17 million tonnes, with palm oil's share at about 80 percent. In 2011/12, India imported 10 million tonnes of cooking oil.
Imports of vegetable oils, including non-edible oils, rose 43.6 percent to 940,167 tonnes in May, reversing the downtrend since February, mainly due to the surge in palm oil imports.
Trade bodies have been asking for a rise in the duty on refined palm oil to safeguard the interests of local oilseed growers and refiners. But the Indian government is yet to pay any heed as inflation has only just reached comfortable levels.
Sliding Rupee To Dampen Imports?
Monthly soyoil imports are expected to rise 42.2 percent as local supplies are almost exhausted before the new planting season for soybean. Sunflower imports may have fallen by 11.7 percent as the expensive oil is used less in the hot season, when there are fewer feasts and festivals using fried foods.
Domestic cooking oil supplies decline during the summer season as planting of the main oilseed crop soybean takes place in June-July, while its harvesting takes place in October.
A slide in the rupee could turn the tide again in June, however.
"Imports in June could be around 880,000 tonnes as the weak value of the Indian currency is expected to make imports costlier," said R.K. Singhal, a Delhi-based trade analyst.
Imported refined palm oil is currently quoted at $860 per tonne on the country's west coast, while the delivered price for crude palm oil is $845 per tonne. The Indian rupee hit a record low at 58.7 against the dollar on Tuesday.
The survey showed average estimated stocks at Indian ports at the end of May fell 11 percent to 625,000 tonnes from April as refiners used old stocks.
The Mumbai-based Solvent Extractors' Association is expected to release its May import data this week.