India's groundnut output seen down 29%, possible rise in palm oil imports

RAM also said the increase in Indian import duties on rival soybean oil in June 2018 was also expected to reverse the downtrend in palm oil exports for Malaysia and Indonesia.

MUMBAI: India's groundnut output from summer-sown crop is likely to fall 29.2 percent from a year ago to 3.74 million tonnes as scanty rainfall hit yields in the top producing western state of Gujarat, a leading trade body said on Monday.

The drop in output could force the world's biggest edible oil importer to raise overseas purchases in the 2018/19 marketing year starting from Nov. 1.

In Gujarat, groundnut output halved from a year ago to 1.6 million tonnes, the Solvent Extractors' Association of India (SEA) said in a statement.

Gujarat received 28 percent lower rainfall than normal in the June-September monsoon season, according to the India Metrological Department.

India buys palm oil from Indonesia and Malaysia, with its soyoil mainly imported from Argentina and Brazil, and purchases sunflower oil from Ukraine.

The country's palm oil imports in 2018/19 could jump 8.7 percent from a year earlier as consumption in the world's biggest edible oil consumer will expand amid a drop in local supplies, a leading industry analyst said last month. - Reuters