India's Palm Oil Buying Spree Surges Ahead of Festival Season

India has increased its purchase of palm oil significantly after the government cut taxes on edible oil imports, according to Aashish Acharya, vice president at Patanjali Foods Ltd. Over 200,000 tons of crude palm oil were bought in the past week alone.

The tax reduction aims to contain food costs and has made palm oil more attractive to buyers. As a result, inventories held by distributors and other downstream buyers are running low, adding urgency to purchases ahead of the festival season, which includes Diwali and the wedding season that follows.

India typically imports 500,000 to 650,000 tons of palm oil per month, and a sustained restocking push could quickly absorb excess supply, supporting prices. Acharya noted that if prices fall further, India's purchases could accelerate, potentially rising to as much as 750,000 tons a month during peak demand.