Mumbai: The share of palm oil in India’s growing edible oil imports is expected to drop to the lowest since 2005/06 in the current year to October, as a narrower discount for prices of the tropical oil versus that of rival soyoil hurts demand.
This shift in buying pattern at the world’s top palm oil importer could drag on benchmark prices that have shed 3 percent in 2015 amid ample global soyoil supplies. Weak Brent crude prices have also dragged by making palm an unattractive option for blending into biodiesel.
The share of palm oil in India’s total edible oil imports will drop to 65 percent, said Govindbhai Patel, a trade expert and managing director at GG Patel & Nihil Research Co.
“Incremental demand has been shifting to soyoil,” he said.