MUMBAI: India’s palm oil imports for the next four months are expected to fall as high prices prompt buyers to shift to rival oils such as soyoil and sunflower oil, industry officials said.
Malaysian palm oil futures have jumped 27 per cent in five weeks to 2,760 ringgit ($661.87), the highest in two years, on prospects of lower production and stockpiles.
India is the world’s biggest buyer of edible oils and palm oil corners the bulk of the market share due to its relatively lower prices.
But rising prices of palm oil prompt consumers to turn to soyoil and sunflower oil that are considered more beneficial for health.
Palm oil’s discount to soyoil for January shipments has narrowed to less than $90 per tonne from $205 in July 2019, said a Mumbai-based importer.
Published in Dawn, November 26th, 2019