In March, India increased the import of sunflower oil by 1.5 times

India in March increased sunflower oil imports by 51% from February to 448,000 tons, the second-highest on record, while palm oil imports fell 3.3% to the lowest level since May 2023 at 481,000 tons. Against the background of falling prices, processors have intensified purchases of sunflower oil, reducing imports of competing palm oil.

India's cut in palm oil imports could stem the rise in benchmark palm oil futures in Malaysia, which are now near a one-year high, while rising sunflower oil imports will reduce its stocks in the Black Sea region.

High prices for palm oil encourage importers to increase the import of sunflower oil, experts of the Sunvin Group company, which produces vegetable oils, believe.

Crude palm oil (CPO) for delivery to India in May is being offered at $1,020/t CIF (including freight and insurance), while soybean oil is at $1,000/t and sunflower oil is at $960/t, according to dealers. Palm oil is usually sold cheaper than competing soybean and sunflower oils, but now a sharp decline in its supplies has led to a significant increase in prices.

At the same time, competitive prices for sunflower oil will ensure an increase in its import in April and May, according to the company GGN Research, which trades in vegetable oils. Data from the SEA Association on oil imports in March will be released in mid-April.

Soybean oil imports to India in March grew by 27% compared to February to 220,000 tons, but it is still significantly lower than the average monthly import of the previous season – 306,000 tons. Against the background of increasing purchases of sunflower and soybean oil, the total import of vegetable oils to India in March grew by 18.7% compared to February to a 6-month high of 1.149 million tons.

We will remind that India imports palm oil mainly from Indonesia, Malaysia and Thailand, and soybean and sunflower oil - from Argentina, Brazil, Ukraine and the Russian Federation.