KUALA LUMPUR: India's imports of edible oil imports are expected to continue this year and the purchase was expected to increase, with the bulk of imports being palm oil, said ECM Libra Research said.

In a research note issued on Sept 23, it said purchases in the year starting from Nov 1, may rise as much as 6% to 8.5 million tonnes and some 80% of that would consist of palm oil, based on the Solvent Extractors’ Association.

In India this year, their main oilseed crop, groundnuts, has been severely hit by delayed monsoon rains and this had, according to the association, caused some 1.5 million tonnes shortfall in production.

"We certainly see this as favourable news for the sector. India and Pakistan have been key drivers in CPO exports this year," it said.

Over last week, it said CPO futures were flattish despite export numbers for Sept 1 to 15 being bearish as shipments for the said period had declined some 20.3%.

"We do expect some pick up in October from the European Union and continued exports to India and Pakistan," it said.

As for the soybean market, it added things were relatively flattish as well. It said a “record crop” in the US continues to weigh down on prices.
However, there was concern the incoming frost season as potential dampener to the oncoming harvest.

ECM Libra Research also the Edge Weekly reported UK’s Advertising Standards Authority (ASA) upheld a complaint filed by Friends of the Earth and two other complainants that a print advertisement placed by the Malaysian Palm Oil Council was misleading. The ad would now be banned.

"Our view is that palm oil has consistently been under fire from environmental groups but most PLANTATION [ registerQuotes("PLANTATION", "PLANTATION_span"); ] companies we have spoken to find their efforts futile. Besides that, there has already been more effort by planters to work towards RSPO standards, which include no open burning and better facilities for workers," it said.