3 hrs ago
Black Sea Disruption Sends India's Sunflower Oil Imports Lower
India bought much less sunflower oil in September than it did the month before.
The war in Ukraine has damaged ports around the Black Sea, making it harder to ship sunflower oil.
Because of these shipping problems, Indian oil refiners bought more palm oil instead.
Palm oil purchases reached their highest level in seven months.
India also imported less soyoil, and its total edible oil imports went down.
A trader said companies were building palm oil stocks before festivals, when people usually buy more cooking oil.
One industry group was expected to publish official import figures by mid-October.
India's sunflower oil imports fell 36% in September to 103,000 metric tons, their lowest level since April 2022.
Dealers attributed the drop to Ukraine war-related damage to Black Sea port infrastructure and shipping constraints.
Palm oil imports rose 3.5% to 810,000 tons, their highest level in seven months.
Soyoil imports fell 4.6% to 600,000 tons, while total edible oil imports declined 3.75% to 1.5 million tons.
A Mumbai-based dealer said refiners increased palm oil purchases to build stocks ahead of India's September-November festival season.
- Who
- Indian oil refiners and importers; dealers provided estimates and explanations.
- What
- Sunflower oil imports fell sharply, while palm oil imports increased.
- Where
- India, with sunflower oil shipping affected by disruption to Black Sea ports.
- When
- September; a dealer expected sunflower oil imports to remain low in October.
- Why
- Ukraine war-related damage and logistical constraints hindered sunflower oil shipments; refiners also built palm oil stocks ahead of the festival season.
Import pressures
Market response
Sunflower oil supply
Import pressures
Black Sea port damage linked to the Ukraine war has made sunflower oil shipments to India difficult; a trader expected imports to remain low in October.
Market response
The article reports no opposing assessment of the shipping disruption; refiners responded to limited sunflower oil availability by increasing palm oil purchases.
Palm oil buying
Import pressures
Higher palm oil purchases could help major producers Indonesia and Malaysia reduce stocks and support benchmark palm oil futures.
Market response
Indian refiners increased purchases to build stocks ahead of the festival period, when edible oil demand typically peaks.
Key facts
- Sunflower oil imports
- 103,000 metric tons in September, down 36% month-on-month and the lowest since April 2022.
- Palm oil imports
- 810,000 tons, up 3.5% month-on-month and at a seven-month high.
- Soyoil imports
- 600,000 tons, down 4.6% from the previous month's record high.
- Total edible oil imports
- 1.5 million tons, down 3.75%.
- Data source
- Figures are dealers' average estimates; the Solvent Extractors' Association of India was due to publish September data by mid-October.
- Festival period
- India's festivals run from September to November, when edible oil demand typically peaks.
Quotes
Rajesh Patel
Managing partner at trader GGN Research in Rajkot.
“Even in October, sunflower oil imports will remain low because of logistical constraints.”
telegraphindia.com
Sources
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