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India's palm oil imports dropped by over 33% in September, reaching a six-month low of 527,314 metric tons due to higher prices and increased domestic stocks. The Solvent Extractors' Association of India (SEA) reported a decline in overall vegetable oil imports, including soyoil, which fell 15.4%, and sunflower oil, which dropped by 46.2%, hitting a ten-month low. The reduction in imports has reduced vegetable oil stocks in India to 2.45 million tons, down from 2.93 million tons the previous month. The ongoing festive season is expected to push palm oil imports back above 700,000 tons in October as demand for edible oils rises.

Key Highlights

* India's palm oil imports fell by over 33% in September.

* Sunflower oil imports hit a ten-month low, down 46.2%.

* Total vegetable oil imports dropped 30%, reducing stocks.

* Higher domestic stocks and prices impacted purchase volumes.

* Festive season demand could drive imports above 700,000 tons in October.

India's palm oil imports in September declined by over 33%, reaching a six-month low of 527,314 metric tons, according to data released by the Solvent Extractors' Association of India (SEA). The sharp reduction in imports was primarily due to rising domestic stocks and a rally in benchmark Malaysian palm oil prices, which discouraged buyers from importing large volumes. The SEA also reported significant drops in the imports of other vegetable oils, with soyoil imports falling by 15.4% to 384,382 tons and sunflower oil imports plunging by 46.2% to 152,803 tons, marking the lowest level in ten months.

The price performance of palm oil has been heavily influenced by higher stocks in India, along with rising costs from key producers like Indonesia and Malaysia. These factors combined to slow down purchases, even as demand for edible oils is expected to increase with the ongoing festive season. Lower vegetable oil imports have led to a decrease in India's overall vegetable oil stocks, which now stand at 2.45 million tons, down from 2.93 million tons the previous month.

Despite the current lull in imports, market experts predict that India's palm oil imports could rebound in October. With festive demand boosting consumption, imports are expected to rise above 700,000 tons next month. Buyers may take advantage of this opportunity to restock ahead of further price fluctuations.

Finally

India's palm oil imports could recover in October due to festive demand, but rising prices and domestic stock levels remain critical factors influencing future purchasing decisions.

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