India’s sunflower oil imports are expected to rise by around 30% to 3.5 million metric tonnes in the 2026-27 marketing year, supported by lower import duties and improved price competitiveness, according to the Solvent Extractors’ Association of India (SEA).
Angshu Mallick, president of SEA, said higher sunflower oil purchases could lead to a decline in soyoil imports during the marketing year beginning November 1. Soyoil imports are expected to fall by 10.7% to around 5 million tonnes, he said on the sidelines of the Globoil conference.
The Indian government last week reduced the basic import duty on crude sunflower oil from 10% to zero, making the oil more competitive against other imported edible oils.
“Because of the duty cut, sunflower oil is now more affordable for consumers. The duty reduction is expected to boost consumption,” Mallick said.
The change is expected to alter the composition of India’s edible oil import basket rather than significantly increase overall imports. India meets nearly two-thirds of its vegetable oil requirement through imports, with palm oil, soyoil and sunflower oil accounting for the majority of purchases.
Major suppliers of edible oils to India include Indonesia, Malaysia, Argentina, Russia and Ukraine.
While sunflower oil imports are projected to rise sharply, palm oil imports are expected to remain broadly stable at around 8 million tonnes in 2026-27. However, palm oil purchases could come under pressure if international prices increase due to tighter supplies.
Eddy Martono, chairman of the Indonesian Palm Oil Association, said palm oil could trade at a premium to soyoil in 2027 as the El Niño weather pattern threatens production and stronger biodiesel demand in Indonesia tightens available supplies. Indonesia is the world’s largest palm oil exporter.
Despite the expected shift between different edible oils, India’s overall vegetable oil imports are forecast to remain largely unchanged at around 16.5-17 million tonnes in 2026-27.
Mallick said total imports could, however, increase by around 1 million tonnes if below-normal rainfall affects domestic rapeseed production.
Rapeseed is India’s major winter-sown oilseed crop and contains nearly 40% oil, making it an important contributor to domestic edible oil availability. Any significant decline in production could increase dependence on imports.
Concerns have already emerged over rainfall in Rajasthan, the country’s largest rapeseed-producing state. Rajasthan accounts for nearly half of India’s rapeseed production and reportedly received around 22% less rainfall than normal during the June-September monsoon season.
A weaker rapeseed crop could increase demand for imported edible oils and partly offset the expected reduction in soyoil imports.
The latest projections therefore indicate a significant change in the composition of India’s edible oil imports, with sunflower oil likely to gain market share following the duty reduction. At the same time, total import volumes are expected to remain broadly stable unless domestic oilseed production is affected.
The development will be closely watched by oilseed growers, processors, importers and consumers, particularly as global edible oil prices respond to weather conditions, biodiesel demand and changes in international supply.