India's sunflower oil imports hit four-year low on Black Sea disruption; palm oil rises

MUMBAI: In September, India's sunflower oil imports hit a four-year low due to disruptions caused by the ongoing Ukraine war, according to five dealers. Refiners have since increased their palm oil purchases, which reached their highest level in seven months, the dealers reported. This surge in palm oil buying by India, the world's largest importer of vegetable oils, could aid its top producers, Indonesia and Malaysia, in maintaining their stock levels and supporting palm oil futures.

Sunflower oil imports plummeted 36% from the previous month to 103,000 metric tons, marking the lowest level since April 2022, as per the average estimates of dealers. Meanwhile, palm oil imports surged by 3.5% month-on-month to a seven-month high of 810,000 tons, while soyoil shipments declined by 4.6% from their last month's record high to 600,000 tons.

Overall, edible oil imports fell by 3.75% to 1.5 million tons, primarily due to reduced shipments of sunflower oil and soyoil. Industry official Rajesh Patel, managing partner at trader GGN Research, highlighted that the Ukraine war has damaged port infrastructure in the Black Sea, making it challenging to transport sunflower oil to India even though demand remains strong.

Patel further noted that sunflower oil imports are expected to remain low throughout October due to logistical constraints. India primarily sources its palm oil from Indonesia and Malaysia, while soyoil and sunflower oil are mainly imported from Argentina, Brazil, Russia, and Ukraine. Importantly, palm oil imports have risen recently as refiners aim to stockpile supplies ahead of the upcoming festival season in India, which sees a series of festivities between September and November when edible oil demand typically peaks.