Dealers say that India's edible oils imports reached a 10-month high in July due to increased palm oil buying.

Five 'dealers' said that India's edible oils imports rose to the highest level in ten months in July, as refiners increased their?purchases? of palm oil and soybean oil to replenish?inventory ahead...of the festival season?amid tightening...domestic supplies.

The world's largest importer of vegetable oil could be helping top producers Indonesia and Malaysia to reduce stocks and support benchmark soyoil and palm oil futures.

Dealers' average estimates show that palm oil imports increased by 50% in July compared to a month earlier - reaching 733,000 tons, the highest level in five months.

Imports of soyoil rose by 32% in July, to 501,000 tonnes, the highest level in seven months. Sunflower oil exports increased by 4%, to 253,000 tons.

Estimates show that India's edible oils imports grew 34% between June and July to a 10-month-high of 1,49 million tons, mainly due to?higher imported of all the three major edible oils.

Dealers said that the figures do not include duty-free shipments from Nepal.

By mid-August, the Solvent Extractors' Association of India will publish its July import data.

Sandeep Bajoria of Sunvin Group in Mumbai, the chief executive officer of a vegetable oil brokerage, says that stocks have decreased after lower imports during the past few month.

India will celebrate several festivals between August to November when the?demand for edible oils peaks.

The prices of soyoil are extremely competitive and are expected to exceed 500,000 metric tonnes in August and September, according to Rajesh Patel of GGN Research, a trader in Rajkot, a city in western Gujarat.

Patel said that "lower domestic crushing of rapeseeds and soybeans" is increasing demand for imports.

India imports most of its palm and soy oil from Indonesia, Malaysia and Argentina. Soy oil and sunflower oil come mainly from Brazil, Russia, Ukraine and Argentina. (Reporting and editing by Mrigank Dahniwala; Reporting by Rajendra Jhadhav)

(source: Reuters)