IVPA leader veg oil imports  16.20 million tonnes this season

According to the president of the Indian Vegetable Oil Producers Association (IVPA) Sudhakar Desai, India’s import of vegetables in the oil year 2023-24 (November to October) would be around 16.20 million tonnes (mt).  Speaking at the 2023 Global Economic and Market Conference at the International Palm Oil Congress and Exhibition (PIPOC) in Kuala Lumpur, Malaysia, on Thursday, he said palm oil imports are expected to reach 9 million tonnes in the 2023-2024 oil year. Desai forecasts that Malaysia’s palm oil production could rise to 18.85 million tonnes for the year, up from 18.61 million tonnes last year, an increase of 240,000 tonnes. Indonesia’s production is expected to remain at 49.26 million tons.    

With Malaysian stocks growing at around 2.7 million tonnes, the market is expected to move to tighter stocks by April-May 2024, he said. On the palm oil price outlook, Desai said Bursa Malaysia Derivatives (BMD) will remain in the range of 3,600 to 3,900 Malaysian ringgit for the next three months. He also hinted at the possibility of prices rising to RM4,200 by March, mainly due to the tight stock situation in Malaysia.   

Growth due to low prices 

Talking about the huge increase in India’s vegetable imports, he said imports will reach a record 16.9 million tonnes in the oil year 2022-23. This significant increase after a two-year slowdown was due to attractive low prices in the market, which not only led to a significant increase in inventories but also stimulated a significant recovery in consumption. For the 2023-2024 oil year, Desai projected normal consumption growth of about 2.8 percent, with total consumption increasing to 25.20 million tons. At the event, he discussed the key dynamics of the Indian market and its profound impact on the global vegetable oil market.

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