New Delhi: India, the world’s biggest buyer of palm oil after China, may produce fewer monsoon-sown oilseeds as dry weather in the main growing areas reduced sowing of peanuts. Output may be 12-15% less than the 15.07 million tonnes produced in the monsoon crop last year, Govindlal G. Patel, director, Dipak Enterprises, said. Patel has been trading oilseeds for more than four decades.
Higher vegetable oil purchases by India may help stem a slide in the price of palm oil, which has fallen 14% after reaching a nine-month high in May. The tropical oil accounts for 90% of India’s edible oil bought abroad.