India's Palm Oil Imports Increase in March as Ukraine's Sunoil Supplies Cut Off

According to a leading trade body, India's palm oil imports increased 18.7 percent in March compared to the previous month, as traders sought alternatives to sunflower oil, which can no longer be purchased from Ukraine.

India, the world's largest importer of edible oils, may increase its purchases of palm oil, which could support Malaysian palm oil futures.

The Solvent Extractors' Association of India (SEA) reported that 539,793 tonnes of palm oil arrived in India in March, up from 454,794 tonnes in February.

According to the report, India imported 212,484 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.

"However, because no shipment from Ukraine arrived in April, sunflower oil imports may fall to nearly 80,000 tonnes, primarily from Russia and Argentina," it said.

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

The country's soyoil imports fell to 299,421 tonnes in March, down from 376,594 tonnes the previous month, according to the SEA.

"Brazil and Argentina have a limited surplus of soyoil." In recent months, India has attempted to purchase soyoil from other countries, including the United States and Germany. However, these countries are unable to ship large volumes," said a Mumbai-based dealer with a global trading firm.

According to SEA data, India imported a record 112,576 tonnes of soyoil from the United States in the first five months of the current 2021/22 marketing year, which ends on Oct. 31.

Because supplies of sunoil and soyoil are limited, India is forced to import more than 600,000 tonnes of palm oil in April, according to the dealer. India imports palm oil primarily from Indonesia and Malaysia, and soy oil primarily from Argentina and Brazil.