What prompted Indian refiners to favour palm oil over soyoil and sunoil?

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Indian Refiners Increased Palm Oil Purchases Due to Significant Price Discounts

Indian refiners increased their purchases of palm oil in March, favouring it over soyoil and sunoil primarily due to substantial price differentials. Palm oil traded at a discount of over US$150 per tonne compared to soyoil and sunoil during the previous month and the first half of March. This significant price advantage made palm oil a more economically attractive option for refiners looking to optimise their procurement costs.
Significant Discount Drove Palm Oil Demand

The key factor influencing the shift towards palm oil was its considerable price discount against competing oils. In the period leading up to and during the first half of March, palm oil was available at more than US$150 less per tonne than both soyoil and sunoil. This economic incentive directly prompted Indian refiners to increase their acquisition of palm oil, as evidenced by the substantial rise in imports.
Palm Oil Imports Saw a Marked Increase

Following the favourable pricing, India's palm oil imports experienced a notable surge in March. The country imported approximately 750,000 tonnes of palm oil, marking a significant 28 per cent increase from the 586,007 tonnes imported in February, which represented an eight-month low. This rise in volume underscores the impact of the price discount on purchasing decisions by Indian refiners.
Competitor Oils Faced Reduced Demand

Concurrently, the increased preference for palm oil led to a decline in imports of soyoil and sunflower oil. Soyoil imports fell by 27 per cent to 259,000 tonnes in March, while sunflower oil imports decreased by 4 per cent to 150,000 tonnes, reaching a five-month low. This shift reflects refiners reallocating their purchasing power towards the more cost-effective palm oil.

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What prompted Indian refiners to favour palm oil over soyoil and sunoil?

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