India’s edible oil and oilmeal sector has shifted into a wait-and-watch mode amid the escalation around Iran following attacks by the United States and Israel. Market participants are closely monitoring developments, as potential logistical disruptions could affect both edible oil imports and oilmeal exports to the Gulf and European markets.
According to B.V. Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA), imports of palm oil and soybean oil are not currently facing serious difficulties. Palm oil supplies come to India from Indonesia, Malaysia and Thailand, while soybean oil is mainly imported from Argentina and Brazil via the Cape of Good Hope route, reducing exposure to Middle Eastern risks.
However, sunflower oil shipments could be affected if navigation through the Suez Canal or the Strait of Hormuz is disrupted. In such a scenario, vessels would need to take a longer route, extending voyage time by around 15 days and increasing freight costs. As a result, sunflower oil could become more expensive for Indian importers.
Experts also note that rising crude oil prices typically lead to higher freight rates. Increased transportation costs are ultimately reflected in commodity prices, which may push up domestic edible oil prices in India.
As for oilmeals, a significant share of exports is directed to Far Eastern markets, where no immediate issues are expected. However, around 20–30% of shipments go to West Asian and European markets, which could face temporary disruptions. According to SEA data, India exported 32.35 million tonnes of oilmeals in April–January of the 2025/26 marketing year, compared to 43.42 million tonnes in the same period a year earlier, including 4.43 million tonnes shipped to West Asian markets.
