Surge in Palm and Sunflower Oil Imports in May 2024
Edible Oil Imports in May 2024
May 2024 witnessed a significant increase in the import of edible oils into India, with palm and sunflower oil leading the surge. This trend, juxtaposed with a decline in soybean oil imports, has critical implications for exporters. In total, the import of edible oils into India reached 1.5 million tonnes, marking a 15% increase compared to the 1.3 million tonnes imported in May 2023. This rise highlights a shift in import patterns influenced by price competitiveness and market demand.Palm Oil and Sunflower Oil Imports
Imports experienced a 12.4% increase, climbing from 0.685 million tonnes in May 2023 to 0.769 million tonnes in May 2024. Within the palm oil category, the import of Refined, Bleached, and Deodorized (RBD) palm olein surged by 57%, from 0.124 million tonnes to 0.214 million tonnes. Sunflower oil imports saw an even more substantial increase of 74%, rising from 0.234 million tonnes to 0.408 million tonnes. This significant jump highlights a growing preference for sunflower oil among Indian importers, reflecting its competitive pricing and perceived health benefits.Decline in Soybean Oil Imports
Conversely, soybean oil imports declined by 16.5%, dropping from 0.375 million tonnes to 0.322 million tonnes. Despite a slight decrease in import volumes, the average price of crude soybean oil remained relatively high for July 2024 arrivals, slightly lower than sunflower oil. The surge in palm oil imports in May was the highest since January, driven by a decline in prices that made it more competitive relative to other edible oils. In May 2024, the futures price of Malaysian palm oil fell to its lowest level in three months, encouraging increased purchases by Indian importers. This trend is expected to continue, with imports projected to remain high at around 0.750 million tonnes in June.Malaysian Palm Oil Production and Stock
The Malaysian Palm Oil Board (MPOB) is expected to release official data in mid-June, but preliminary industry estimates indicate a rise in Malaysia's surplus stock of palm oil. By the end of May 2024, the outstanding stock is projected to reach 1.75 million tonnes, up from 1.74 million tonnes at the end of April. Production of crude palm oil in Malaysia increased by approximately 10% in May, reaching around 1.65 million tonnes. This rise in production contributed to a 14.32% increase in the export of palm oil products, totaling 1.41 million tonnes. Despite higher exports, the substantial production increase led to an overall rise in surplus stock.In May 2024, India saw a notable rise in palm and sunflower oil imports, reflecting their competitive pricing and high demand. Palm oil imports surged by 12.4%, while sunflower oil saw a remarkable 74% increase. Conversely, soybean oil imports declined by 16.5%. For exporters, this shift emphasizes the importance of staying attuned to market trends and price movements to capitalize on emerging opportunities.Â
