India’s soyoil imports in June are likely to fall by 18% from a month ago to the lowest level in four months, as congestion at a key port will lead to unloading vessels into July instead of June, industry officials told Reuters.

The world’s biggest importer of vegetable oils fulfils nearly two-thirds of its edible oil requirement through imports, and delays in unloading vessels could create a shortage in the local market and lift prices.

June soyoil imports are likely to fall to 325,000 metric tons, down from the earlier estimate of 400,000 tons, as congestion at Kandla port means a few vessels will now be unloaded in July instead of June, said Rajesh Patel, managing partner at GGN Research, an edible oil trader.

Kandla port in the western state of Gujarat accounts for a quarter of India’s total vegetable oil imports, as many nearby edible oil refineries prefer this port for their imports.

“Currently, edible oil vessels face waiting periods of 9-10 days. Based on the lineup of incoming vessels, this could escalate to 15-20 days,” said B.V. Mehta, the executive director of the Solvent Extractors’ Association of India (SEA).

The delays lead to heavy demurrage costs, which in turn increase overall import costs and drive up edible oil prices for consumers, Mehta said.

The congestion at Kandla is also affecting palm oil imports, but the impact on its supplies will be minimal as a large quantity is being discharged at ports in eastern India, said a New Delhi-based trader with a global trade house.

India buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Source: Reuters