Key Takeaways
- India’s sunflower oil imports expected to rise 30% to 3.5 million metric tons in 2026/27.
- Duty cut on crude sunflower oil has made it more affordable for consumers.
- Palm oil imports likely to remain steady at around 8 million tons.
India’s sunflower oil imports are forecast to increase by 30% to 3.5 million metric tons in the 2026/27 marketing year, according to Angshu Mallick, president of the Solvent Extractors’ Association of India (SEA).
The reduction in import duties on crude sunflower oil to zero from 10% has significantly lowered prices, making the product more accessible to consumers, Mallick noted.
The surge in sunflower oil imports is anticipated to reduce soyoil purchases by 10.7% to 5 million tons in the same period, as consumers shift towards the cheaper alternative.
Palm oil imports are expected to remain steady at around 8 million tons, although rising prices and concerns over supply due to the El Niño weather pattern could impact demand, according to Eddy Martono, chairman of the Indonesian Palm Oil Association.
India imports nearly two-thirds of its vegetable oil demand, primarily from Malaysia, Indonesia, Argentina, Russia, and Ukraine, with sunflower oil being a significant component.
The country’s total vegetable oil imports are projected to remain largely steady at 16.5 million to 17 million tons in the 2026/27 marketing year, with potential increases if lower rainfall affects the domestic rapeseed crop.
Rapeseed, the main winter-sown oilseed crop in India, typically plays a crucial role in determining the country’s edible oil supplies, with an oil content of nearly 40%.
The northwestern state of Rajasthan, which accounts for nearly half of India’s rapeseed production, received 22% less rainfall than average during the June-September monsoon season, potentially impacting domestic supplies.
Because of the duty cut, sunflower oil is now more affordable for consumers. The duty reduction is expected to boost consumption.
Angshu Mallick, President of the Solvent Extractors’ Association of India (SEA)
Palm oil imports in the new year are likely to remain steady at around 8 million tons, although purchases could be affected by rising prices amid concerns over supplies due to the El Niño weather pattern.
Eddy Martono, Chairman of the Indonesian Palm Oil Association
