By Rajendra Jadhav

MUMBAI, (Reuters) – India’s September palm oil imports more than doubled over a year ago to a record 1.4million tonnes. This was due to increased palm oil purchases by buyers ahead of important festivals and to benefit from newly lowered duties. Brokers and dealers stated that this happened because of the fact that palm oil prices have risen.

India, the biggest purchaser of vegetable oils in the world, may have increased purchases, which could help support prices for palm oil, currently trading at a new record level.

According to Sandeep Bajoria (chief executive at Sunvin Group), a vegetable oil broker and chief executive, the country’s September vegetable oil imports jumped 72% over a year ago, reaching a new record of 1.8million tonnes.

Bajoria stated that “Imports rose because government decided to lower import taxes and festive season demand.”

India has lifted import restrictions for refined palm oil. It also slashed the base import tax on sunflower oil, soybean oil, and soy oil. This is as New Delhi attempts to reduce near-record prices.

The December quarter is when edible oil consumption typically spikes with the start to the wedding season and festivals such as Dhanteras or Diwali.

A top palm oil producer Indonesia provided a large portion of India’s palm oils imports for September. The country was also offering palm oil at a lower price than Malaysia. This is according to a Mumbai dealer who works with a global trading company.

According to the dealer, soybean oil usually increases its market share in India’s edible oils market starting October when fresh harvest soybeans are processed.

“This year the excessive rain in September delayed soybean harvesting. He also said that local demand is low since import soymeal can be purchased at lower prices.

New Delhi allowed the import of 1.2 Million Tonnes of genetically modified soymeal (GMS) in August. This was to assist the poultry industry, which had seen its prices rise to a new record.

Dealers said that September’s sunflower oil imports increased by 154% over a previous year to 170,000 tonnes. Soyoil imports dropped to 250,000 tonnes in comparison with 316,232 tons a year earlier.

Mumbai-based trade organization Solvent Extractors Association of India will publish the September import number in mid-October.

Another dealer in Mumbai said that India could import from 1.2 million to 1.3million tonnes of vegetable oils in October. From November onwards, the imports might moderate to between 1 and 1.1 million tons.

According to the dealer, there has been an increase in demand for restaurants and hotels due to a decrease in coronavirus infection rates.