India’s Palm Oil Pullback: Refiners Cancel 65,000-Ton Import Contracts Amid Price Surge

Indian refiners have reportedly cancelled contracts to import 65,000 metric tons of palm oil for the July–September shipment window, citing rising global prices and higher import duties. The move follows a broader trend, with refiners having already walked away from 100,000 metric tons of palm oil purchases for the October–December period.

 

Why It Happened:

A recent 20 percentage point hike in import duties has pushed the total tax on crude palm oil to 27.5%, up from 5.5%. Combined with a sharp rise in Malaysian palm oil futures, refiners found it more profitable to cancel contracts than follow through.

This shift underscores how policy changes and global price swings are reshaping India’s edible oil trade, with refiners opting for shortterm gains over longterm supply security.

 

Sources: Economic Times, Selangor Journal, EquityPandit