India, the world's largest vegetable oil importer, is anticipated to adjust it`s oil purchase dynamics in 2024. According to Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil consultancy, and brokerage firm, there is a projected increase in soybean oil imports to 4.3 million tonnes in the 2023/24 marketing year, up from 3.5 million tonnes in 2022/23. Simultaneously, palm oil imports are expected to decline to 9.2 million tonnes in 2023/24 compared to 10 million tonnes in the previous marketing year.
The shift in preference from palm oil to soybean products is attributed to negative refining margins for palm oil versus positive margins for soybean oil in recent weeks, as noted by traders. This change in India's buying patterns may impact palm oil-producing nations such as Indonesia and Malaysia, potentially leading to elevated inventories and influencing benchmark futures.
Sandeep Bajoria also mentioned that India's sunflower oil imports are anticipated to remain stable at approximately 3 million tonnes in the current marketing year. This would result in the country's total vegetable oil imports reaching 16.5 million tonnes in 2023/24, maintaining consistency with the previous year's figures.
Summing up the overall scenario, Bajoria stated, "Overall, domestic production of vegetable oils will be about 10 million tons, and imports will be 16.5 million tons. Therefore, total consumption will be about 26.5 million tons."
Summing up the overall scenario, Bajoria stated, "Overall, domestic production of vegetable oils will be about 10 million tons, and imports will be 16.5 million tons. Therefore, total consumption will be about 26.5 million tons."
In January, India witnessed a more than 12% decline in palm oil imports compared to the previous month, reaching a three-month low of 782,983 tonnes. Notably, India sources palm oil mainly from Indonesia, Malaysia, and Thailand, while soybean and sunflower oil are procured from Argentina, Brazil, Russia, and Ukraine.
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