MUMBAI: India’s palm oil imports are set to plunge to a near five-year low in January, hit by negative refining margins as the tropical oil’s premium over rivals drives buyers to more competitively priced soyoil, government and industry officials told Reuters.

Lower palm oil imports by the world’s biggest buyer of vegetable oils could weigh on benchmark Malaysian palm oil prices, but support US soyoil futures.

“About 110,000 metric tons of palm oil was cleared in the first half of January, which is a pretty small amount compared to the usual monthly imports,” said a government official, who sought anonymity as he was not allowed to speak to media.