India sunflower oil imports may jump 30% after import duty cut

India's sunflower oil imports are likely to rise by 30% in the 2026/27 marketing year to reach 3.5 million metric tonnes, as a recent cut in import duties has lowered prices and boosted domestic demand. The projection was announced by Angshu Mallick, president of the Solvent Extractors' Association of India (SEA), speaking on Wednesday.

Addressing attendees on the sidelines of the Globoil conference, Mallick noted that the surge in sunflower oil purchases is expected to reduce soyoil imports by 10.7% down to 5 million tonnes in the next marketing year starting November 1. Because of the duty cut, sunflower oil has become significantly more affordable for everyday consumers, directly driving up consumption.

Last week, India reduced the basic import duty on crude sunflower oil from 10% to zero. Meanwhile, palm oil imports in the upcoming year are projected to remain steady at approximately 8 million tonnes, though purchases could be constrained by rising prices amid ongoing supply concerns linked to the El Niño weather pattern.

Eddy Martono, chairman of the Indonesian Palm Oil Association, stated on Tuesday that palm oil could trade at a premium to soyoil in 2027. This shift is anticipated as El Niño threatens agricultural production and rising biodiesel demand in top exporter Indonesia tightens global supplies.

India meets nearly two-thirds of its total vegetable oil demand through imports, sourcing primarily palm oil, soyoil, and sunflower oil from Malaysia, Indonesia, Argentina, Russia, and Ukraine. Overall Indian vegetable oil imports are forecast to stay steady at 16.5 million to 17 million tonnes in 2026/27, though volumes could increase by an extra 1 million tonnes if poor monsoon rainfall negatively impacts the domestic rapeseed crop.