India set for record soyoil imports as Russia-Ukraine war disrupts sunflower shipments
India's soyoil imports are expected to reach a record 620,000 metric tons in August, about 46% above the current marketing year's monthly average, as competitive prices and disruptions to sunflower oil shipments from the Black Sea encourage refiners to increase soyoil purchases ahead of festive demand, traders said.
Mumbai: India's soyoil imports are expected to reach a record high of 620,000 metric tons in August, nearly 46% above the average monthly imports of 424,549 tons so far this marketing year, according to four traders involved in trade deals. This surge is due to competitive soyoil prices and disruptions to sunflower oil shipments caused by the Russia-Ukraine war, prompting buyers to switch to soyoil.
Soyoil prices are very competitive, making it an attractive option. The Russia-Ukraine conflict has led to delays in sunflower oil shipments, with around 150,000 tons of sunflower oil from the Black Sea region delayed. Buyers in southern India, who typically prefer sunflower oil, are now switching to soyoil due to the shipment disruptions.
The premium for soyoil over palm oil has narrowed to around $50 a metric ton, making it more attractive to price-sensitive Indian buyers. Indian imports are projected to surpass 600,000 tons even in September, driven by ample soyoil supplies and competitive prices. The conflict has also led India to source soyoil from various destinations, including China, Egypt, Thailand, and Turkey, to ensure prompt shipments.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
