India's vegetable oil imports strain port storage, delaying unloading

Business Recorder, citing Reuters, reported that heavy vegetable oil purchases by India have created congestion at major ports, holding up ship unloading by as many as 10 days. Storage tanks on shore are close to capacity, and refiners are struggling to clear cargo as it arrives. Sandeep Bajoria, head of brokerage Sunvin Group, said nine ships holding 300,000 metric tons of edible oil were queuing to unload at Kandla port.

Kandla in Gujarat handles close to a third of India's total edible oil arrivals, and Haldia on the east coast is also facing congestion, though less severely, dealers said. Imports in August reached an 11-month high of 1.54 million tons, and a similar volume is expected in September. Refiners had bought prompt-delivery cargo because it was cheaper than later contracts, which created a glut at ports, according to trader GGN Research.

Slower consumption than expected after festival buying has slowed cargo movement from port-based refineries, and refiners are now cutting purchases for October to December shipments. According to the report, the resulting stock build-up in Indonesia, Malaysia and Argentina could weigh on palm oil and soyoil futures.