Earlier last week, Government officials in India, the world’s seventh-largest economy by nominal GDP and the third-largest by PPP (purchasing power parity), had told in a statement that the country would allow imports of refined palm oil at least until December 2022, as the world’s largest vegetable oil importer has been looking to a drawdown in edible oil prices while taunting a sharp shoot-up in inflation indicators.
In point of fact, latest move from Indian Government came forth just hours after the country had decreed a year-long ban on commodity futures’ trading in a bid to bring down soaring food prices. Nevertheless, followed by the statement, several analysts were quoted saying that the latest move from Indian Govt would eventually decline imports of crude palm oil, as buyers would more likely to turn to refined palm oil since leading palm oil exporting countries such as Indonesia usually imposed higher levies on crude shipments than those on refined palm oil.
India allows refined palm oil import until end-2022 to bring down food prices
On top of that, in a statement issued earlier this week, the Indian Ministry of Commerce and Industry said that all imports of refined palm oil would be allowed to continue until end-2022, however, the Southeast Asian economic powerhouse had extended refined palm oil import permits for six months on mid-2021.
Meanwhile, addressing to a likely upsurge in refined palm oil exports next year, Chief executive of Sunvin Group, a vegetable oil brokerage and consultancy firm wrote in a client note followed by the announcement that Indian palm oil importers could bring in 1.5 million tons of refined palm oil alongside 7 million crude palm oil in marketing year 2021-2022 that started on November 1.
As palm oil accounts for roughly a 60 per cent of entire imports in India, a drawdown in palm oil prices would more likely to help Indian Government tame food prices which had been scaling higher by an unprecedented pace over recent past in context of a country-wide pandemic-induced supply chain disruption.