India looks to Thailand as palm oil prices soar

India looks to Thailand as palm oil prices soar

THE WHAT? India upped palm oil imports from Thailand in May 10 fold versus the previous month, according to a report published by S&P Global, thanks to attractive pricing in comparison to palm oil produced in Malaysia and Indonesia.

THE DETAILS India buys some 650,000 to 750,000 mt per month – making it the largest buyer of palm oil in the world. This price-sensitive market purchases almost exclusively from Indonesia and Malaysia, per S&P Global, but with Thai-origin oil some US$10 cheaper per mt compared to its rivals, India’s head has been turned.

THE WHY? Palm oil is currently trading at highs not seen in the past decade as supply has been affected by the pandemic and prices have risen due to tax increases ushered in by Malaysia and Indonesia.