Indian Port Logjam Threatens Global Vegetable Oil Prices

A surge in vegetable oil imports into India has caused a storage shortage at major ports, putting pressure on global prices. At least 9 ships carrying 300,000 tons of oil are waiting to be unloaded at the port of Kandla, which handles a third of edible oil imports.

The port of Holdia, another significant importer of vegetable oils, is also experiencing capacity constraints. India increased its vegetable oil imports in August to an 11-month high of 1.54 million tons and plans to import about the same amount in September.

However, slower-than-expected domestic consumption growth has led to a build-up of inventories at ports. As a result, Indian refiners will reduce purchases of vegetable oils for delivery in October-December, further increasing pressure on prices.