india march import oil

India’s March palm oil imports increase as Ukraine’s supply of sunflower oil runs out – dealers

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  • In March, imports of palm oil increased by 21% to 550,000 T.
  • Imports of sunflower oil have increased to 210,000 T from 152,220 T.
  • Imports of soyoil fell 18% to 310,000 T.

According to four traders, India’s palm oil imports increased by 21% in March compared to the previous month as traders sought alternatives to sunflower oil, which could no longer be purchased from Ukraine.

Meanwhile, a bad soyoil crop in South America has reduced India’s ability to rely on that edible oil as a replacement for Ukrainian sunflower oil.

The palm oil price, as indicated by the futures contract (FCPOc3), reached an all-time high of 7,268 ringgit per tonne on March 9, but has since declined to 5,741 ringgit per tonne.

According to a Mumbai-based dealer with a worldwide trading organisation, 550,000 tonnes of palm oil arrived in India in March, up from 454,794 tonnes in February.

Palm oil imports will stay strong even in April, as sunflower oil imports are projected to dip due to Russia’s invasion of Ukraine, according to Govindbhai Patel, managing director of trading firm G.G. Patel & Nikhil Research Co.

More than 90% of India’s imported sunflower oil is typically sourced from Ukraine and Russia, primarily Ukraine.

According to Patel, India bought 210,000 tonnes of sunflower oil in March, up from 152,220 tonnes in February, aided by the arrival of a few ships that had left Ukraine prior to the war.

Now that Ukrainian supplies of sunflower oil have dried up, Indian refiners are attempting to acquire more from Russia and Argentina, according to Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage and consultant.

“However, there are some constraints. In the absence of Ukraine, we cannot import more than 100,000 tonnes every month. There is a demand for 200,000 tonnes “According to Bajoria.

India has signed a contract for 45,000 tonnes of Russian sunflower oil at a record high price for shipments in April, since edible oil prices in the domestic market have risen due to the suspension of Ukrainian supply.

The Solvent Extractors’ Association of India, a trade organisation located in Mumbai’s commercial centre, is expected to release March’s import figures in mid-April.

According to dealers, India imported approximately 310,000 tonnes of soyoil in March, which was 18% less than in February.

India imports palm oil primarily from Indonesia and Malaysia, and soy oil primarily from Argentina and Brazil.

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