India’s sunflower oil imports fell sharply in September as Black Sea shipping disruptions constrained supplies, prompting refiners to increase palm oil purchases.
Sunflower oil imports declined 36% from August to an estimated 103,000 metric tonnes in September, the lowest monthly volume since April 2022, according to average estimates from five dealers.
In contrast, palm oil imports rose 3.5% month-on-month to 810,000 tonnes, the highest level in seven months. Soyoil imports declined 4.6% from the previous month’s record high to around 600,000 tonnes.
Total edible oil imports fell 3.75% to about 1.5 million tonnes during the month, mainly due to lower sunflower oil and soyoil shipments.
The disruption to sunflower oil supplies is linked to damage to port infrastructure in the Black Sea region following the continuing Ukraine war. The disruption has made it more difficult to move sunflower oil to India despite steady demand.
“Even in October, sunflower oil imports will remain low because of logistical constraints,” said Rajesh Patel, managing partner at trader GGN Research in Rajkot, Gujarat.
India sources most of its palm oil from Indonesia and Malaysia, while soyoil and sunflower oil are imported largely from Argentina, Brazil, Russia and Ukraine.
The shift towards palm oil comes as Indian refiners prepare for higher edible oil demand during the festive season. India’s major festivals take place between September and November, a period when consumption of cooking oils typically rises.
A Mumbai-based dealer with a global trading house said refiners increased palm oil purchases in September partly to build inventories ahead of the festive season.
Higher Indian demand for palm oil could provide support to producers Indonesia and Malaysia by helping reduce inventories and potentially strengthening benchmark palm oil prices.
The September import figures are based on estimates by industry dealers. The Solvent Extractors’ Association of India is expected to release its official edible oil import data for the month by mid-October.
The continued disruption to sunflower oil shipments could keep India’s import basket tilted towards palm oil in October, although the extent of the shift will depend on Black Sea logistics and global edible oil prices.