India’s vegetable oil imports fell 1.8 percent in January from a year earlier, as high stocks and rising prices discouraged buying after record shipments last year, when India toppled China as the world’s biggest buyer.
The country bought 872,395 tonnes of vegetable oils, including 827,182 tonnes of edible oils, according to data from the Solvent Extractors’ Association of India on Monday.
Imports of edible oils were down 3.4 percent year-on-year, but were 8.6 percent higher than December and exceeded trade forecasts for a 4.1 percent rise from the previous month.
Vegetable oil imports in the first quarter of the oil year from November went up 9 percent to 2.4 million tonnes from a year earlier as the appreciating rupee and the expected fall in domestic rapeseed output encouraged purchases.
The trade body said the year-on-year dip in January imports was partly because of heavy purchases a year ago, when prices were low and traders were importing heavily ahead of an expected rise in import levies.
“In view of the increased imports during the last three months coupled with the domestic crushing season, stock of vegetable oils has built up,” said B.V. Mehta, executive director of the trade body.
He said India has about 1.5 million tonnes of vegetable oil stocks, which can meet 35 days of demand.
India, the world’s top vegetable oil importer, buys mainly palm oils from Indonesia, Malaysia and a small quantity of soyoil from Argentina and Brazil.
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