Domestic supplies to slow Indian palm oil imports

India's palm oil imports are likely to dip by more than 25 percent to less than one million tonnes in the three months from March with more domestic supply available after a good crop, dealers said on Wednesday.
Total edible oil imports in the three months were likely to drop to about 1.2 million tonnes from 1.66 million in the year ago period.
India, the world's largest edible oils importer, buys palm oils from Malaysia and Indonesia and soft oils, mainly soyoil, from Argentina and Brazil.
"The share of palm oils between March and May is likely to be around 800,000-900,000 tonnes compared with 1.2 million tonnes a year ago," said B.V. Mehta, executive director of the Solvent Extractors' Association of India.
"Soft oil imports during the period will be about 300,000 tonnes compared with 400,000 tonnes at the same time last year."
But Malaysian palm oil exporters saw higher Indian oil purchases during the three month period.
They said India was expected to take an average of 300,000 to 350,000 tonnes a month of palm oils between March and May from Malaysia and Indonesia.
"I think it will easily gross a million tonnes in these three months," said an export manager at a commodities house in Kuala Lumpur.
India imported about 1.1 million tonnes of edible oil between November, when the new oil year begins, and February, almost the same as last year.
Traders said the bulk of demand would come from southern India as the north was expected to have adequate domestic supplies from the mustard crop, which is grown mainly in northern and central states.
"The total oil imports between March and May will be lower than last year with the greater availability of domestic oils, mainly mustard oil," said Govindbhai Patel, a leading importer in western Gujarat state.
The Central Organisation for Oil Industry and Trade (COOIT), a leading trade body, said on Sunday that the country's oilseed output in 2003/04 (November-October) was likely to jump to 23.8 million tonnes from 14.9 million a year ago.
It said summer mustard output was forecast to increase to 6.7 million tonnes from 3.3 million.
Traders said palm oil would form the bulk of imports between March and May as current soyoil prices were higher.
They said palm oil prices were strong but had scope for a slight dip in April as Malaysia entered the peak production season and more soyoil supplies entered the South American market.
"The current high prices of palm oils and soyoils are unsustainable," said a Bombay-based analyst.
Prices of palm products in Kuala Lumpur have jumped 10 percent since the start of this year, mostly due to highs in Chicago soyoil.