India's imports of palm oil products continued to surge with increased import of RBD Palmolein and Crude Palm Oil (CPO) for the November 2016-September 2017 period.

According to data from the Solvent Extractors' Association of India, India's overall veg oil imports for the period stood at 14.2 million tonnes as compared to 13.56 mt last year, indicating a rise of 5 per cent.

Based on current import trends, SEA projects India's overall veg oil imports for the year November 2016-October 2017 at 15.5 mt against 14.57 mt last year.

The rise in imports is also supported by the strengthening of the rupee against the dollar from September 2016 to August 2017. Against the monthly average of Rs 66.71 against a dollar in September 2016, the rupee quoted at Rs 64.48 a dollar in September 2017.

The data, however, shows surging imports of palm oil products, the share of which has increased to 61 per cent in overall imports as against 57 per cent last year "thanks to larger import of RBD palmolein and CPO."

Meanwhile, import of soft oils, including soyabean oil, sunflower oil, rapeseed/ mustard oil has reduced to a combined 5.39 mt from 5.7 mt last year. "However, within soft-oils, import of sunflower oil has sharply increased at the cost of soyabean oil," SEA noted.

"Importers continue to make larger import purchases of sunflower oil, taking advantage of attractive prices vis-à-vis soya oil," it added.

According to the SEA data, crude sunflower oil prices hovered at $838 per tonne (CIF Indian port), against which crude soyabean oil quoted at $836 per tonne, giving a marginal difference of $2 per tonne. However, the price difference was wider in September last year when crude sunflower oil quoted at $843 per tonne, against crude soyabean oil priced at $803 per tonne, making the latter a cheaper option to purchase.

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