Indian imports of sunflower oil in January rose to a record 473,000 tonnes, almost three times the average monthly imports. As major exporters such as Russia and Ukraine try to reduce their inventory. An industry official told Reuters.
India’s largest vegetable oil imports record While sunflower oil offers a discount to rival soybean oil, it rose to its highest level in nine months.
Increased imports will help major Black Sea producing countries reduce their stocks. But it could reduce Indian palm oil imports and weigh on Malaysian palm oil prices.
“Sun Oil traded at a discount for soybean oil in December. Discounts are profitable for Indian buyers,” said Rajesh Patel, Managing Partner of GGN Research.
In the last week of November and early December The sunflower discount for soybean oil rose to about $100 per tonne, the highest since February 2022, as contentious producers Russia and Ukraine sought to ship more after a deal to secure Black Sea shipping was extended.
Sandeep Bajoria, president of the International Sunflower Oil Association, said the deal would allow exporters to move backlogged warehouses and sign new contracts as well.
The Black Sea accounts for 60% of global sunflower oil production and 76% of exports.
India’s monthly sunflower oil imports average around 161,000 tonnes in the 2021/22 marketing year ending Oct. 31.
Russia is now offering Sunoil at competitive prices to settle its stock. While Ukraine is selling sunflower seeds along with oil. As it is struggling to crush all available seeds due to logistical issues. said the dealer in Singapore.
Ukraine sells seeds to Romania and Bulgaria. which is processing seeds and exporting oil to India, traders said.
India’s decision to allow duty free import Sunoil’s acquisition until March 2024 also makes buying Sunoil attractive to oil refiners in India. India’s Leading Vegetable Oil Importer Says
“Imported sunflower will reduce palm oil purchases this quarter. in south india Sunoil should replace palm oil,” he said.
