India to launch sunflower oil futures trading

India’s Multi Commodity Exchange (MCX) will launch futures trading in crude sunflower oil on October 12, 2026. The new instrument will allow importers, processors and traders to hedge price risks and lock in prices for future periods. For India, one of the world’s largest sunflower oil importers, the contract will provide an additional mechanism to protect against fluctuations in international prices.

According to MCX, contracts expiring in November and December 2026 and January 2027 will initially be available. Each contract will represent 5 tons, with prices quoted in Indian rupees per 10 kg. The contracts will be cash-settled, without physical delivery of the oil.

The new instrument is being introduced amid disruptions to sunflower oil supplies from the Black Sea region. According to Reuters, logistics problems in Ukraine and Russia could limit India’s sunflower oil arrivals to around 160 thsd tons in October, compared with monthly requirements of approximately 250 thsd tons. This is prompting Indian importers to increase palm oil purchases as an alternative.

The new futures contract could establish an additional domestic price benchmark for India’s sunflower oil market. The development of futures trading in India will also be relevant for Ukrainian exporters, helping them better assess price expectations in one of their key export markets. However, the contract’s impact on physical trade will depend on its liquidity and market participation.

Tags: sunflower oil, India