India doubles sunflower oil imports in December
India’s sunflower oil imports surged 145% in December to a 17-month high of 350,000 tonnes, driving overall edible oil inflows. Palm oil imports fell 20% to an eight-month low of 507,000 tonnes, while soyoil rose 37% to 508,000 tonnes. Total edible oil imports jumped 19% to 1.37 million tonnes.
India sharply increased sunflower oil imports in December, making them one of the main drivers of growth in overall edible oil inflows. According to traders’ estimates, sunflower oil imports surged 145% month on month to 350,000 tonnes, marking the highest level in 17 months.
At the same time, palm oil imports fell to an eight-month low. India imported around 507,000 tonnes of palm oil in December, down 20% from November, amid weaker winter demand and a shift by refiners toward alternative oils, particularly sunflower oil and soyoil.
The slowdown in palm oil purchases by India, the world’s largest importer of vegetable oils, could lead to higher inventories in key producing countries Indonesia and Malaysia. This may weigh on Malaysian palm oil futures, while offering some support to US soyoil prices.
Meanwhile, soyoil imports also increased, rising 37% month on month to 508,000 tonnes in December. As a result, India’s total edible oil imports climbed 19% from November to 1.37 million tonnes, a three-month high, driven primarily by stronger inflows of sunflower oil and soyoil.
Market participants note that seasonal factors played a significant role in softer palm oil demand. Palm oil consumption in India typically declines during the winter months, as the tropical oil solidifies at lower temperatures, limiting its use in northern regions. At the same time, domestically available oils such as groundnut oil, soyoil and cottonseed oil become more competitive.
India sources most of its palm oil from Indonesia and Malaysia, while sunflower oil and soyoil are imported from Argentina, Brazil and Black Sea countries, including Ukraine and Russia. Looking ahead, traders expect palm oil imports to rebound in January due to its current price discount, while purchases of sunflower oil and soyoil may ease.
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Source : Ukr Agro Consult
