India witnessed a significant surge in March in sunflower oil imports, soaring by 51 per cent compared to the previous month, reaching the second-highest level on record. This increase was primarily attributed to lower prices, compelling refiners to boost their purchases of sunflower oil while decreasing their procurement of rival palm oil, according to the news agency Reuters.
The decline in palm oil imports by India, the world’s largest importer of vegetable oils, might constrain the upward momentum in benchmark Malaysian palm oil futures, which are currently trading close to their highest level in a year.
The heightened purchases of sunflower oil are expected to contribute to reducing sunflower oil inventories in the Black Sea region.
Estimates provided by dealers indicate that March witnessed a remarkable surge in sunflower oil imports, reaching 448,000 metric tons, marking the second-highest volume on record. In contrast, palm oil imports experienced a decline of 3.3 per cent, totaling 481,000 tons, the lowest since May 2023.
Currently crude palm oil (CPO) imports are offered at approximately USD 1,020 per metric ton, including cost, insurance, and freight (CIF), for May delivery in India.
In comparison, soy oil and sunflower oil are offered around USD 1,000 and USD 960 per ton, respectively.
Typically, palm oil trades at a discount to soy oil and sunflower oil, but dwindling stocks have led to its prices surpassing those of its rivals, which are currently experiencing abundant supplies.
Rajesh Patel, managing partner at edible oil trader and broker GGN Research, emphasised that the competitive pricing of sunflower oil would likely sustain higher imports even during April and May.
In March, soy oil imports witnessed a notable increase of 27 per cent, reaching 220,000 tons compared to the previous month. However, this figure remains considerably lower than the monthly average imports of 306,000 tons observed in the last marketing year ending 31 October as estimated by dealers.
The Solvent Extractors’ Association of India (SEA) is anticipated to release its data on March imports by mid-April.
The significant rise in sunflower oil and soy oil imports propelled India’s total edible oil imports in March to the highest level in six months, totaling 1.149 million tons, an 18.7 per cent increase from the previous month, as reported by dealers.
India predominantly procures palm oil from Indonesia, Malaysia, and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
