Rising demand for palm oil from India is helping the commodity's futures rise to new levels.
Traders in Mumbai said palm oil futures in Malaysia, the benchmark for the commodity, has been icreasing thanks to rising demand from India, the world's second biggest buyer of vegetable oils.
Palm oil for October delivery on the Malaysia Derivatives Exchange rose by 43 ringgit, or 1.7 per cent, to 2,626 ringgit a tonne.
Industry experts have predicted that India's palm oil imports may rise to 450,000 tonnes a month through to October.
Palm oil prices are rising to record levels these days because China and India are stepping up purchases.
A trade report said that the onset of summer and firm yuan currency against the dollar will result in larger quantities of palm oil flowing into China, the world's largest edible oil buyer.
It is estimated that China will buy 370,000 tonnes of Malaysian palm oil in July compared with 253,000 tonnes shipped in July last year.
India has been grappling with poor domestic supplies. Thus India is expected to import more edible oil until local oilseed crops start maturing in October, the report said.
Palm oil constitutes half of India's edible oil imports, which are expected to surge to at least five million tonnes (mt) in the year to October.
The Malaysian palm oil has gained more than 20 per cent this year because of a supply shortage and strong global demand.
