Palm oil shipments by India, the world’s biggest buyer, will climb to a record this year as tumbling prices and zero-tax on exports from Malaysia make the oil attractive to refiners, said Ruchi Soya Industries Ltd. (RSI)
Inbound shipments may increase to 9 million metric tons in the year ending Oct. 31, more than the 8 million tons estimated in July, Dinesh Shahra, managing director of the nation’s biggest importer, said in an e-mail interview. Purchases were at 8.3 million tons in 2012-2013, the highest ever, data from the Solvent Extractors’ Association of India show.
Palm and soybean oils slumped to the lowest in five years this month as forecasts for record supplies threatened to widen a glut in global cooking oils. Palm will drop in the next few weeks toward the cost at which growers in Asia produce the world’s most-used cooking oil, Dorab Mistry, director at Godrej International Ltd., said Sept. 15. The decline spurred Malaysia, the world’s second-biggest grower, to scrap export tax on crude palm oil for two months through October to boost shipments.
“We have seen and would see a surge in imports in the nearby month” because of the Malaysian tax cut, Shahra said. “Stockpiles are thinner versus previous years,” he said. Most traders had “hand-to-mouth” stockpiles as longer dated deliveries were cheaper than spot rates, he said.
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