Vegetable oil inventories in India have fallen to their lowest level in more than three years, as palm oil imports in March remained below average for the fourth consecutive month. The Solvent Extractors’ Association of India (SEA) reported that vegetable oil stocks at the start of April 1st fell 11.3% from the previous month to 1.67 million metric tons, the lowest since December 2021.
This depletion of stocks could potentially force India, the world’s biggest buyer of vegetable oils, to increase imports of palm oil and soyoil in the coming months. Increased imports would likely support Malaysian palm oil prices and US soyoil futures.
Palm oil imports in March increased by about 14% from the previous month, reaching 424,599 metric tons, according to the SEA. However, India’s average monthly palm oil imports were higher, at over 750,000 tons, during the marketing year that ended in October 2024.