Sunflower oil shipments to India more than doubled

Palm oil imports into India fell to a yearly low in April amid weak demand.

Palm oil imports into India dropped by 27% in April to a one-year low, as sluggish demand from institutional buyers and a recent rise in prices, which reduced its discount compared to competing oils, prompted refiners to cut purchases, five dealers said.

The decline in imports by the world’s largest vegetable oil importer could lead to rising inventories in leading producing countries such as Indonesia and Malaysia and put pressure on Malaysian palm oil futures.

According to dealer estimates, palm oil imports in April fell to 505,000 metric tons, the lowest level since April 2025, compared to 689,462 tons in March.

Soybean oil imports in April rose by 24% from the previous month to 355,000 tons, reaching the highest level in four months, while sunflower oil shipments more than doubled to 435,000 tons, the highest level in 22 months.

Total edible oil imports into India are estimated to have increased by 10.4% from March to 1.3 million tons in April, reaching the highest level since January 2026, driven by a sharp rise in purchases of sunflower and soybean oils.

According to dealers, these figures do not include duty-free supplies arriving via land borders from Nepal.

The SEA association is expected to release April import data by mid-May.

Food service establishments and restaurants are facing shortages of liquefied petroleum gas (LPG) for cooking, effectively reducing their consumption of palm oil, and this trend is reflected in the import figures, said Sandeep Bajoria, CEO of Sunvin Group, a brokerage and consulting firm specializing in vegetable oils.

These restaurants serve popular dishes such as samosas and chole bhature, which are typically deep-fried.

India, the world’s second-largest importer of cooking LPG, is facing its most severe gas crisis in decades as the government cuts supplies to industry and raises prices for commercial cylinders to protect households from shortages.

Sunflower oil imports surged in April as processing margins were higher than for competing oils, and Indian buyers placed orders ahead of potential disruptions linked to the conflict with Iran, said Rajesh Patel, managing partner at GGN Research, an edible oil trading firm based in Rajkot, Gujarat.

Tags: palm oil, sunflower oil, India