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    Edible oil imports could jump to record as scanty rains trim output, says analyst

    Edible oil imports could jump to record as scanty rains trim output, says analyst

    Edible oil imports could jump to record as scanty rains trim output, says analyst
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    By Reuters  IST (Updated)

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    Higher purchases by the world’s biggest edible oil importer could support palm oil prices that are under pressure due to sluggish demand amid an expected rise in production.

    India’s edible oil imports are likely to rise 7.3 percent in 2019/20 to a record high as scanty monsoon rains are expected to curtail yields of summer-sown oilseeds such as soybeans and groundnut, a senior industry official said.
    Higher purchases by the world’s biggest edible oil importer could support palm oil prices that are under pressure due to sluggish demand amid an expected rise in production.
    “Rainfall was scanty over oilseed-growing areas. It will reduce yields of groundnut, soybeans and cotton,” said Govindbhai Patel, managing director of trading firm GG Patel & Nikhil Research Company.
    The shortfall in oilseed production will force India to import as much as 1.61 crore tonnes of edible oils in the new marketing year starting from Nov.1, up from this year’s estimated 1.5 crore tonnes, Patel said.
    India has received 18 percent below-average rain since the monsoon season began on June 1, although some oilseed-growing regions such as Vidarbha in the western state of Maharashtra received 37 percent less rainfall, according to data compiled by the India Meteorological Department (IMD).
     
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