India's palm oil imports hit four-month low as refiners favour cheaper soyoil

India's palm oil imports in September dropped to their lowest since May as refiners shifted to cheaper soyoil, shipments of which hit a more than three-year high, the Solvent Extractors' Association of India said on Wednesday.

Lower palm oil imports by India, the world's largest buyer of vegetable oils, are expected to weigh on the benchmark Malaysian palm oil futures while supporting U.S. soyoil futures.

India's palm oil imports in September dropped 16.3% to 829,017 metric tons, marking their lowest point since May, the industry trade body said.


Imports of soyoil surged 36.8% to 503,240 tons, the highest level since July 2022, while sunflower oil imports rose about 6% to 272,386 tons, the highest since January, it added.

The decline in palm oil imports dragged India's total edible oil imports in September down by 1% month-on-month to 1.60 million tons, the trade body said.

India's palm oil imports are likely to fall to around 600,000 tons in October, while soyoil imports will likely exceed 450,000 tons, said a Mumbai-based dealer with a global trade house.

India buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.

India purchased 300,000 tons of soyoil from Argentina during September 23 and September 24, the largest ever purchase in a two-day period, dealers said, taking advantage of Buenos Aires' move to scrap export taxes on soybeans and other food products.

Demand for edible oil in India, particularly palm oil, typically rises during the festival season amid increased consumption of sweets and fried foods.