India to increase sunoil imports by 33% this season

04.08.2017

India will import 14.3 MMT of vegoils for the whole current season (November 2016 – October 2017), or 300 KMT less than at the same time last season (down 2% year-over-year), Reuters reports. The decline in imports will occur for the first time in the last six years, thanks to a higher oilseed crop in the country (38.2 MMT, or up 20% from last season). Vegoil imports will fall primarily at the expense of soybean oil purchases (down 17% to 3.5 MMT). Sunoil and rape oil imports expanded by 33% to 2 MMT and by 2% to 8.6 MMT, respectively.

On July 19, the Indian government stated that they are not planning to raise the import duty on crude palm oil for preventing price growth in the domestic market. Previously, some market participants proposed setting the duty at 20%, i.e. almost tripling it from the current 7.5%. The import duty on refined palm oil will remain at 15%.

Farmers refuse to sell oilseeds for current low prices. According to market participant estimates, vegoil stocks may total 1.8 MMT as of early 2017/18, i.e. much more than 441 KMT as of October 1, 2016.

 

UkrAgroConsult

 

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