Palm Oil

Palm oil is the most imported edible oil in India. Due to its competitive price the consumption of it has increased in the country. Though the government do not distribute cooking oil for PDS (public distribution system) but beacuase of the high inflation this year it imported rbd palmolien in big quantity for PDS.

Palm oil is the biggest oil exported in the world and imported in India. European Union and China are the other major importers with Indonesia and Malaysia being the major producer and exporters in the international market. Indian import includes RBD palmolein and crude palm oil for consumption and to some extent palm kernel oil for industrial use.

BMD(Malaysia) is the biggest futures market in the world. The palm oil fluctuates with the variations in the prices of crude oil as it can be used as biofuel. Hence the future markets too move in direction of crude futures. Indian production is negligible compared to its consumption hence the local produce prices do not have effect on import. Soybean oil prices is also the one of the most important price and import determining factor for palm oil.

The futures market is active for palm oil in India.

(Indicative Wholesale Commodity Prices in US$ PMT)

10th Oct - The cpo has dropped by around 10% in local market this week to usd 615-625. Though the futures are declining on malaysian exchange, the depriciating rupee is making the import cost dearer and hence the decrease in prices in India is less than in the international market. The rbd palmolien was at usd 770-780 pmt at mumbai and kakinada.

3rd Oct - The crude palm oil at Kandla dropped down by usd 50 to 705-715 as International market of palm oil went down while at mumbai and kakinada rbd palmolien was available for US$ 855-865

26 Sep - The rbd palmolein showed the drop at international level so in Indian markets too with available at usd 905-915 at Mumbai and Kakinada. The Cpo at Kandla was at US$ 755-765.

15 Sep - The prices for crude palm oil at Kandla were usd 755-765 whereas the rbd palmolien was quoted in mumbai wholesale market for usd 950-960. The dollar is continuously getting stronger against rupee making it hard for importers.

8th Sept - The prices for RBD palmolien in Indian wholesale market of Mumbai were US$ 1065-1075 while in Kakinada it remained at 1015-1025. The crude palm oil prices at Kandla were 815-825.