Follow Us on Google News
India’s January sunflower oil imports are set to surge to a record 473,000 tonnes, nearly triple average monthly imports as top exporters Russia and Ukraine seek to reduce stockpiles, industry officials told Reuters news agency.
Record imports by India, the world’s biggest vegetable oil importer, come as sunflower oil’s discount to rival soyoil widened to the highest level in nine months.
The import surge will help key Black Sea producing countries in reducing their stocks, but could dampen India’s palm oil imports and weigh on Malaysian palm oil prices.
“Sunoil was trading at discount to soyoil in December. The discount made it lucrative for Indian buyers,” said Rajesh Patel, managing partner at GGN Research.
Read more: Wall Street Week Ahead Recession fears pose challenge to energy shares after stellar year
In the last week of November and early December, sunflower oil’s discount to soyoil widened to around $100 per tonne, the highest since February 2022, as warring producers Russia and Ukraine tried to ship more after a deal to provide safe passage to Black Sea shipments was extended.
The deal allowed exporters to move stuck stockpiles and sign new contracts as well, said Sandeep Bajoria, president of the International Sunflower Oil Association.
The Black Sea accounts for 60% of world sunflower oil output and 76% of exports.
India’s monthly sunflower oil imports averaged around 161,000 tonnes in 2021/22 marketing year ended on Oct. 31.