Edible oil demand has typically risen 10% to 15% in the run-up to Diwali, and buyers have favoured palm oil this time as its discount has widened. (File pic)MUMBAI: A palm oil glut is making the crop increasingly attractive against rivals, luring buyers in top importer India and other major markets.
Palm’s discount to sunflower oil has widened to about US$300 a tonne, one of the biggest gaps seen in the past few years, according to Aashish Acharya, vice-president at Patanjali Foods Ltd, one of India’s top vegetable oil buyers.
Black Sea attacks have disrupted sunflower oil shipments from Ukraine and Russia, while strong palm oil production in Malaysia keeps supplies buoyant.
"The crop is also commanding a discount of about US$100 a tonne to soybean oil," he said.
