NEW DELHI (Dec 13): Palm oil imports by India, the world’s biggest buyer, increased for a fifth month in November as the government delayed a decision on increasing taxes.

The nation purchased 796,587 metric tons of crude and refined palm oil in November, 3 percent more than the 774,207 tons a year earlier, the Mumbai-based Solvent Extractors’ Association of India said in an e-mailed statement yesterday.

Shipments were almost in line with the median estimate in a Bloomberg survey of 800,000 tons.

Expanding purchases by India may help Malaysia and Indonesia, the biggest producers, to reduce stockpiles and curb a decline in prices. Futures have slumped 18 percent this year and fell in September to the lowest since 2009 on increasing cooking oil supplies and lower petroleum costs which made alternative fuels less attractive.

“Between the push and pull, the import is rising,” said B.V. Mehta, executive director of the association. “The situation will change once the government raises the duty.”

Prices declined 1.1 percent to 2,171 ringgit ($621) a ton today on the Bursa Malaysia Derivatives. Futures dropped to 1,914 ringgit on Sept. 2, the lowest level since March 2009.

Imports of refined, bleached and deodorized palm olein fell to 55,815 tons in November from 208,076 tons a year earlier, according to association data.

The processors want import duties of refined palm oil to be raised to 25 percent from 10 percent and on crude palm to 10 percent from 2.5 percent to protect domestic refineries.

Import Levies

The Indian cabinet will consider a proposal to boost the import tax, Food Minister Ram Vilas Paswan said Dec. 10. The food ministry favors an increase on refined edible oil to 15 percent from 10 percent, while the agriculture ministry wants the duty at 12.5 percent, Paswan said. The food ministry recommended the increase in October.

“Never before such a huge quantity imported in November as this the main crushing month of monsoon-sown oilseeds,” Mehta said from Mumbai. “While the exporters are pushing to liquidate their stocks, importers are pulling before tax is increased.”

Other reasons for the increase in purchases in November were the zero export duty on palm products by Indonesia and Malaysia, the lowest prices in five years and reduced biodiesel demand for crude palm oil, Mehta said.

Overseas purchases of vegetable oils in November were 1,189,934 tons, including 40,803 tons of non-edible oils, compared with 944,309 tons a year earlier, the association said. Total stockpiles of vegetable oils at ports and in pipelines increased to 1.96 million tons from 1.86 million tons, according to the association.