India set for record soyoil imports as Russia-Ukraine war disrupts sunflower shipments
Summary
- Russia and Ukraine supply over 80% of India's sunflower oil imports.
- Sunflower oil arrivals in August are projected to fall to 180,000 metric tonnes, a 28% drop from July and the lowest since February 2026.
- The shortfall is prompting Indian importers to increase purchases of soybean oil, pushing the country towards a record soyoil import volume.
- Higher soyoil imports will widen India's overall edible oil import bill and could exert upward pressure on domestic oil prices.
Key Facts
- · Sunflower oil imports: 180,000 mt in August 2024 (down 28% from July).
- · Russia-Ukraine war has disrupted sunflower seed shipments to India.
- · Soybean oil is the alternative edible oil being imported in larger quantities.
- · India's edible oil import dependence stands at about 75% of domestic consumption.
- · Record soyoil imports could push the fiscal year import bill beyond previous highs.
Why it matters
The shift from sunflower to soybean oil highlights India's vulnerability to geopolitical disruptions in global oil markets, affecting food inflation, trade balance, and agricultural policy decisions.
#sunflower oil#soybean oil#Russia-Ukraine war#edible oil imports#food inflation#trade