India's edible oil imports in March likely rose 9.7 percent from a year ago, the first increase in three months as low taxes and a stronger rupee against the dollar made purchases more profitable, a Reuters survey showed. Importers were encouraged by a stronger rupee, which rose to a 19-month high in April, after gaining 2.7 percent against the dollar in March, the biggest jump in a month since May 2009.
Low import taxes on refined oils and zero duty on crude oils also supported the higher annual purchases, traders said. The survey showed a marginal rise in palm oil imports last month while purchases of soyaoils almost trebled. Asian palm oil is fast closing the price gap with rival South American soyaoil in a trend set to accelerate in 2010 as supplies of palm are poised to outstrip soyaoil.
The benchmark June crude palm oil contract on Bursa Malaysia Derivatives Exchange on Thursday dropped 39 ringgit to settle at 2,500 ringgit ($777.8), hovering around a near-nine week low hit on Tuesday. In 2009, India bought a record 8.4 million tonnes of cooking oil and reclaimed the top importer slot from China after six years. An average of forecasts by eight traders stood at 668,928 tonnes for March, up 9.7 percent from a year earlier, but 0.3 percent lower than purchases in February as port stocks were high.
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