India’s sunflower oil imports halve in February amid higher prices

Summary

India’s crude sunflower oil imports fell sharply in February as rising global prices, currency pressures and shipping disruptions linked to regional conflicts pushed refiners toward cheaper alternatives.

MUMBAI, March 12, 2026 — India’s sunflower oil imports declined by about 51% year-on-year in February as higher prices and logistical disruptions weighed on purchases.

Data released by the Solvent Extractors’ Association of India (SEA) showed imports fell to 1.45 lakh tonnes, compared with nearly double the volume a year earlier.

Price and currency pressures

SEA data indicated the average landed cost rose about 17% to $1,420 per tonne, while a weaker rupee increased import costs for refiners.

Analysts say the currency depreciation has amplified the impact of global price increases on domestic edible oil buyers.

Shipping disruptions intensify

India sources the bulk of its sunflower oil from the Black Sea region, particularly Russia and Ukraine.

Recent shipping challenges—including higher freight costs and surcharges tied to Red Sea risks—have added to import uncertainty. As a result, cumulative imports in the 2025–26 oil year have declined compared with the previous period.

Shift toward palm oil

To maintain adequate inventory levels—currently estimated at about 18.72 lakh tonnes—traders have increased purchases of lower-priced alternatives.

Palm oil imports rose to a six-month high of 8.47 lakh tonnes in February, reflecting its price advantage over sunflower oil.

Why this matters

• Consumer prices: Higher import costs may affect retail cooking oil rates.
• Trade dynamics: India remains heavily dependent on imported edible oils.
• Supply flexibility: Refiners continue shifting between oil types to manage costs.

FAQs

Q1. Why have sunflower oil imports fallen?

Higher prices, freight surcharges and currency depreciation have reduced demand.

Q2. Is India facing an edible oil shortage?

No. Overall vegetable oil stocks remain comfortable due to increased palm and soybean oil imports.

Q3. Why are shipping costs rising?

Freight rates have increased due to higher risk premiums and rerouting around conflict zones.

Q4. How does the rupee affect edible oil prices?

A weaker rupee raises import costs, which can pass through to retail prices.