Rising Palm Oil Prices Change Asia-Pacific Trade Dynamics

This represents 13.3% of India’s average monthly imports, which has already created unpredictable consequences for the market.

“The significant increase in duties and price hikes in Malaysia have caught everyone by surprise,” said one Indian refiner. This situation has created an environment where refiners can make more profit fr om cancelling old contracts than fr om selling refined oil.

These changes have affected not only India but also the entire Asia-Pacific region, wh ere preferences are shifting towards other edible oils such as soybean and sunflower. Experts predict that this trend will continue in the winter months, when palm oil imports traditionally decline due to low temperatures that cause the oil to solidify.

This situation could have a long-term impact on the market, wh ere refiners are concerned about possible price volatility and lower demand in the winter quarter.