India's imports of soyoil reached a record level in August, while palm oil purchases hit the highest volume seen in six months, according to five industry dealers. The surge in edible oil imports comes as refiners build inventories ahead of the country's peak festival season, which typically drives increased demand from August through November.

Palm oil imports climbed 7 percent compared to July, reaching approximately 780,000 metric tons. Soyoil imports surged 21 percent month-on-month to a record 601,000 tons. Meanwhile, sunflower oil shipments declined sharply by 38 percent to 157,000 tons, marking a six-month low. Overall, India's total edible oil imports rose 4 percent from the previous month to 1.54 million tons, the largest volume in nearly a year. These figures exclude duty-free shipments arriving overland from Nepal, which added roughly 100,000 tons of edible oils, including 90,000 tons of soyoil.

Industry experts attributed the uptick to several factors. Rajesh Patel, managing partner at GGN Research in Rajkot, Gujarat, noted that refiners increased purchases to meet the surge in domestic consumption during the festival period. He also cited the relative cost advantage of nearby deliveries versus shipments scheduled for later months as a factor encouraging upfront buying.

Market conditions influenced the composition of imports as well. Soyoil became more competitively priced than palm oil in August, prompting greater demand. Additionally, sunflower oil supplies from the Black Sea region were disrupted due to an escalation of the Russia-Ukraine conflict, further reducing shipments.

India largely sources its palm oil from Indonesia and Malaysia, while soyoil and sunflower oil imports mainly originate from Argentina, Brazil, Russia, and Ukraine. Sandeep Bajoria, chief executive of Sunvin Group based in Mumbai, forecast that imports of soyoil and palm oil will remain elevated into September as the country continues to stockpile ahead of the festive season.

The Solvent Extractors’ Association of India is expected to release official import data for August by mid-September, which will provide further clarity on the import volumes and trends.