India slows palm oil imports as prices rally amid negative margins
rising prices and as refiners face negative margins after making heavy imports in the past few months, industry officials told Reuters on Thursday.
Lower purchases by the world's biggest importer of vegetable oils could lead to higher stocks of palm oil in key producers Indonesia and Malaysia, weighing on benchmark futures which are trading near their highest in level in two months.
«Traders are attempting to liquidate stocks accumulated at ports due to aggressive imports in recent months,» Rajesh Patel, managing partner at edible oil trader and broker GGN Research told Reuters.
«Currently, there's no import parity. Older imported stocks are being offered at lower prices compared to the price of new shipments.»
The landed cost of crude palm oil for December shipments on the west coast without import taxes is 77,500 rupees per metric ton, whereas already imported oil is being offered at 76,500 rupees, traders said.
Higher imports during July to September lifted vegetable oil stocks in India to 3.3 million tons on Nov.
