India's palm oil imports rose by 12.4 percent in May compared to the previous month, reaching the highest level in four months due to a recent price correction, according to five dealers cited by Reuters. Dealers estimate that May palm oil imports increased to 769,000 metric tonnes, the highest since January. The rise in imports was driven by higher margins, prompting traders to increase refined palm oil purchases to 214,000 tonnes, up from 124,228 tonnes the previous month, as noted by Rajesh Patel, managing partner at edible oil trader and broker GGN Research.

As the world's largest importer of vegetable oils, India's increased palm oil purchases could support Malaysian palm oil futures (FCPOc3), which hit a three-month low in May. Crude palm oil (CPO) imports are priced at approximately $948 per metric tonne, including cost, insurance, and freight (CIF), for July delivery in India. In contrast, soybean oil and sunflower oil are offered at around $1,028 and $1,035 per tonne, respectively. Two months ago, CPO was priced higher than these rival oils.

Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage, anticipates that palm oil imports will remain strong in June, with around 750,000 tonnes expected. Additionally, India's sunflower oil imports surged by 74 percent in May to 408,000 tonnes, due to delayed vessel berthing in April caused by port congestion. Meanwhile, soybean oil imports fell by 16.5 percent in May to 322,000 tonnes, according to dealers.

The Solvent Extractors' Association of India (SEA) is expected to release its May import data by mid-June.