Vegetable oil imports by India, the biggest consumer after China, may fall as higher inventory and recent decline in palm oil prices prompt buyers to hold back purchases, an industry executive said.
Imports will drop this month and next as stockpiles at the nation’s various ports have risen to about 8,00,000 metric tonne, compared with 6,00,000 tonne, a level deemed normal, Govindlal G Patel, director of Dipak Enterprise, said . Palm oil futures in Malaysia dropped 8.3% in January, the first monthly decline in four, on concern credit controls in China will cool demand for cooking oils in the world’s largest buyer of the commodity.
The tropical oil accounts for more than 80% of India’s total cooking fat imports.
“Indian importers have covered only about 50% of their February requirement and March imports could be even less,” Patel said. “The recent decline in prices has left importers holding on to costly imports, while buyers are waiting for further decline.”
Source : The Financial Express