India boosts soybean oil imports while cutting sunflower oil purchases

India increased vegetable oil imports by 1.5% m/m in August to an 11-month high of 1.57 mln tons. According to SEA, soybean oil imports jumped 26% to a record 628.74 thsd tons, while palm oil imports rose 7% to 782.76 thsd tons.

The increase was driven by processors building inventories ahead of the festival season from August to November, when demand for edible oils in India traditionally reaches peak levels.

Meanwhile, sunflower oil imports fell 36% in August to 160.64 thsd tons. The decline was mainly caused by disruptions to supplies from the Black Sea region, prompting Indian importers to increasingly replace sunflower oil with soybean oil.

The sharp increase in vegetable oil arrivals has put additional pressure on India’s port infrastructure. Due to a shortage of storage capacity and delays in cargo clearance, some vessels are waiting up to 10 days to unload.

Lower sunflower oil supplies are intensifying competition between vegetable oils in the Indian market. Market participants say a recovery in sunflower oil’s position will largely depend on its price competitiveness against soybean and palm oil.

Tags: sunflower oil, soybean oil, India, imports, edible oils