Due to consistently low palm oil imports, India’s vegetable oil stocks reached a three-year low of 1.67 million metric tons in April. The Solvent Extractors’ Association of India reported that palm oil imports rose slightly to 424,599 tons in March but remained below the average of over 750,000 tons.
This reduced availability may prompt India to boost its imports in the coming months, potentially driving up Malaysian palm oil and U.S. soyoil prices. The tightening supply has significant implications for prices, with analysts expecting India to step up its buying activity in the coming months, which could support global prices, particularly Malaysian palm oil and U.S. soyoil futures.
The shift in import dynamics also reflects changing pricing trends, with a premium on palm oil over soyoil leading Indian buyers to reduce palm oil imports and boost purchases of soyoil. India’s April imports are expected to rise marginally as traders look to replenish depleted stocks.
