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India, the world's leading importer of vegetable oils, saw its sunflower oil imports drop to a four-year low in September. According to the Solvent Extractors' Association of India (SEA), war-related disruptions in the Black Sea region have severely curtailed supplies from Russia and Ukraine. This supply crunch forced Indian refiners to significantly increase their intake of palm oil, which reached a seven-month high.
Specifically, sunflower oil imports plummeted 32% month-on-month to 108,837 tonnes, the lowest volume recorded since April 2022. Conversely, palm oil imports rose by 4.5% to reach 817,884 tonnes. This shift is expected to assist major producers like Indonesia and Malaysia in reducing their stockpiles and may provide support for benchmark palm oil futures.
Soyoil imports also experienced a slight decline, falling 2.2% to 614,965 tonnes. Total edible oil imports for the month stood at 1.54 million tonnes, a 1.76% decrease attributed primarily to the reduced availability of sunflower and soy oils. India traditionally sources most of its palm oil from Indonesia and Malaysia, while soyoil and sunflower oil are imported mainly from Argentina, Brazil, Russia, and Ukraine.
While global sunflower oil supplies remain theoretically ample, the logistics of shipping from the Black Sea have been crippled. Industry experts note that recent attacks on port infrastructure have disrupted loading operations at key shipping hubs. A Mumbai-based dealer reported that a shipment of Russian sunflower oil was recently cancelled, while other cargoes face significant delays due to the volatile security situation.
As the festive season approaches in India, demand for edible oils is rising. With sunflower oil supplies tightened by conflict, refiners are pivoting to palm oil as a primary substitute. This strategic shift highlights how geopolitical tensions continue to reshape global vegetable oil trade flows, forcing major consumers to adapt their procurement strategies in real-time.
Source: The Edge Malaysia