India's October palm oil imports become more expensive

India's palm oil imports are likely to have fallen in October as they became more expensive after Indonesia tweaked export taxes to promote sales of its refined oil, a Reuters survey showed on Friday. Palm oil imports could have dropped 12.2 percent in October to 614,375 tonnes from September, the average of forecasts in a survey of eight traders showed, while soyaoil imports are likely to have risen 43 percent to 172,250 tonnes.
Indonesia, the world's top palm oil producer, raised the export tax on crude palm oil (CPO) and lowered it on refined oil from October 1, prompting India's local refiners to demand a rise in import duty and the government to seek a cut in the CPO duty. "Palm oil imports did not rise after the changes in Indonesian export taxes as prices were higher, while soyaoil imports rose on delayed arrival of shipments from Latin America," said Sandeep Bajoria, chief executive of the Mumbai-based Sunvin Group.
Traders said CPO imports were likely to have been around 500,000 tonnes in October, while RBD palmolein imports were likely to be 90,000-130,000 tonnes. In September, India had imported 548,904 tonnes of CPO and 143,296 tonnes of RBD palmolein. "Indonesia's limited palm oil refining capacity and good demand for refined oil kept prices high, resulting in a fall in the monthly imports for RBD palmolein," said Bajoria.
Palm oil prices rose as much as five percent during October. Indian importers contracted to buy more soyaoil during September when prices declined by 14 percent on an improved output outlook from the United States, and sought deliveries in October, when the south Asian country celebrates Diwali, the festival of lights, and Indian families traditionally feast.
About half of India's 15-16 million tonnes of edible oils demand is met through imports. India, the world's top buyer of cooking oils, imports mainly palm oil from Indonesia and Malaysia, and small quantities of soyaoil from Argentina and Brazil. The Reuters survey suggested vegetable oil imports, including non-edible oils, would fall 2.9 percent in October to 886,125 tonnes from the previous month.
Traders said monthly cooking oil imports could fall for the second straight month in November as the festive season is over and arrivals of summer oilseeds pick up in local markets. The survey showed average estimated stocks at Indian ports at the end of October rose by six percent to 572,000 tonnes from September, reflecting a decline in domestic demand after Diwali.