India's sunflower oil imports seen up 30% on duty cut, industry official says

India’s sunflower oil imports are expected to increase by 30% in the 2026/27 marketing year to reach 3.5 million metric tons, according to Angshu Mallick, president of the Solvent Extractors’ Association of India. This rise in imports is due to a reduction in import duties, which has lowered prices and increased demand for sunflower oil. Mallick made these remarks during the Globoil conference, noting that the duty cut has made sunflower oil more affordable for consumers, thereby boosting consumption.

Meanwhile, palm oil imports are projected to remain relatively stable at around 8 million tons, although they may be impacted by rising prices and potential supply shortages due to the El Niño weather pattern. Eddy Martono, chairman of the Indonesian Palm Oil Association, suggested that palm oil could trade at a premium to soyoil in 2027 due to El Niño's threat to production and Indonesia's tightening of supplies as the top biodiesel demand exporter.

India relies on imports for nearly two-thirds of its vegetable oil needs, primarily sourcing from palm oil, soyoil, and sunflower oil from countries such as Malaysia, Indonesia, Argentina, Russia, and Ukraine. The total vegetable oil imports are expected to stay roughly steady at 16.5 million to 17 million tons in the 2026/27 marketing year, with a potential increase of 1 million tons if lower rainfall affects the domestic rapeseed crop.

Rapeseed, a key winter-sown oilseed crop in India, typically plays a crucial role in determining the country's edible oil supplies. Rajasthan, the northwestern state that contributes almost half of India's rapeseed production, experienced a 22% decrease in rainfall compared to the average during the June-September monsoon season.