India resumes canola oil imports after 5 years as domestic prices surge

India bought canola oil for delivery in August for the first time in nearly five years, as local prices hit a 3-½-year high, making overseas purchases lucrative, industry officials told Reuters. 

A shipment of 6,000 tons of canola oil from the United Arab Emirates is expected to arrive at Kandla port in Gujarat this month, said Rajesh Patel, managing partner at GGN Research, an edible oil trader. 

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

In July, rapeseed oil prices in the spot market surged to 167,000 rupees ($1,914.02) per ton the highest since February 2022 and almost 34 per cent above year-ago levels. 

"The price rally is creating an opening for imports, and we might see more coming in since the new local crop won't hit the market until March next year," said a Mumbai-based dealer with a global trade house. 

India's soyoil imports have also been rising, with some buyers substituting costlier rapeseed oil with the cheaper alternative, he said.