In March, India experienced a notable surge in sunflower oil imports, marking a 51% increase and reaching the second-highest level on record. This surge was primarily driven by declining prices, prompting refiners to ramp up purchases while reducing their reliance on palm oil. Industry experts suggest that this shift could potentially moderate the recent rally in palm oil futures while simultaneously leading to a reduction in inventories within the Black Sea region.
According to reports from Reuters, March saw sunflower oil imports skyrocket to 448,000 metric tons, the second-highest monthly figure ever recorded. In contrast, palm oil imports experienced a decline of 3.3%, totaling 481,000 tons, the lowest since May 2023.
Sandeep Bajoria, CEO of Sunvin Group, a prominent vegetable oil brokerage, noted that the surge in sunflower oil imports can be attributed to production challenges keeping palm oil prices firm. Consequently, buyers are increasingly opting for sunflower oil as a cost-effective alternative.
The price differentials further support this trend, with crude palm oil (CPO) imports priced around $1,020 per metric ton for May delivery, slightly higher than soyoil and sunflower oil, offered at approximately $1,000 and $960 per ton, respectively.
Rajesh Patel, managing partner at GGN Research, emphasized the competitiveness of sunflower oil prices, predicting continued higher imports in April and May.
The increase in sunflower oil and soyoil imports contributed to a significant uptick in India’s total edible oil imports for March, reaching the highest level in six months at 1.149 million tons, marking an 18.7% increase from the previous month.
While India primarily sources palm oil from Indonesia, Malaysia, and Thailand, soyoil and sunflower oil are imported from Argentina, Brazil, Russia, and Ukraine.
The Solvent Extractors’ Association of India (SEA) is anticipated to release its data on March imports by mid-April, providing further insights into the evolving dynamics of India’s edible oil market.