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India's vegetable oil imports climbed to a four-month high in November, reaching 1.63 million metric tons, driven by festive season demand and competitive pricing. Soyoil imports surged 19.3% to 407,648 tons, while sunflower oil imports soared 42.5% to 340,660 tons. Conversely, palm oil imports fell marginally by 0.4% to 841,993 tons. Competitive soyoil pricing from Argentina spurred imports but pressured domestic soybean prices, which remain below the government’s minimum support price. Palm oil's unusual premium over soyoil and sunflower oil further shifted refiners' preferences. Experts predict a decline in palm oil imports in December. India sources its vegetable oils from Argentina, Brazil, Ukraine, and Southeast Asia.

Key Highlights

* India's Nov vegetable oil imports hit a four-month high at 1.63 million metric tons.

* Soyoil and sunflower oil imports increased by 19.3% and 42.5%, respectively.

* Palm oil imports fell slightly by 0.4%, reflecting shifting preferences.

* Competitive pricing from Argentina pressured domestic soybean prices.

* Palm oil's premium over competing oils could reduce imports in December.

India's vegetable oil imports soared to 1.63 million metric tons in November, marking a four-month high driven by robust festival season demand. The festive months of October and November, celebrating Dussehra and Diwali, spiked the consumption of sweets and fried food, prompting refiners to replenish inventories.

Soyoil imports surged by 19.3% to 407,648 tons, while sunflower oil imports jumped by 42.5% to 340,660 tons. In contrast, palm oil imports declined marginally by 0.4%, settling at 841,993 tons. The shift in preferences is partly due to palm oil's unusual premium over soyoil and sunflower oil, which traditionally trade at higher prices.

Argentina offered highly competitive soyoil prices, boosting its imports to India but exerting downward pressure on domestic soybean prices. Soybean rates have dipped below the government-set floor price of ?4,892 per 100 kg, causing concern among local farmers and traders.

India, the world’s largest edible oil importer, sources palm oil mainly from Indonesia, Malaysia, and Thailand, while soyoil and sunflower oil are imported from Argentina, Brazil, Ukraine, and Russia. With palm oil losing its pricing advantage, experts foresee a significant drop in its imports in December, further solidifying the trend towards soyoil and sunflower oil.

Finally

India's shifting oil preferences reflect market dynamics, with refiners favoring competitively priced soyoil and sunflower oil. Palm oil imports are expected to decline further in December.

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