India's palm oil imports in January dropped more than a fifth from a month earlier to 658,670 tonnes as refiners increased overseas purchases of sunflower and soyaoil, data from the Solvent Extractors' Association of India (SEA) showed on Friday. Soyaoil imports could rise even in February from Brazil and Argentina due to a fall in crushing of local soyabean crop, giving support to global prices.
Soyabean prices in India have fallen by a quarter since sowing began in June, prompting farmers to hold back supplies.
The country's soyaoil imports in January surged 131 percent from a month earlier to 224,430 tonnes, while sunflower oil imports rose 3 percent to 155,811 tonnes, the SEA data showed.
"Palm oil imports will also rise in February as from the next month (March) onwards Malaysia is starting to impose duty on exports. Refiners will advance purchases to take benefit of nil-duty structure," said a Mumbai-based dealer.
Malaysia, the world's second-largest producer of crude palm oil (CPO) after Indonesia, said it will start imposing taxes on CPO exports from March onwards after allowing duty-free exports since October.