New Delhi: In August, India is projected to import a record level of soyoil (soybean oil), as its demand for various oilseeds continues to increase. The continued war between Russia and Ukraine has disrupted sunflower oil supplies to India, where the import of soyoil (soybean oil) in August is forecast to hit a record high. Sunflower oil delivery is delayed and Indian refiners are relying on soyoil as a substitute, partially due its competitive price.
As per the traders quoted by Reuters, Indian import of soyoil into the month of August could hit around 620,000MT. This would represent a 46 per cent increase over the average monthly imports of 424,549 tons during the currImportsent marketing year that started in November.
The increase comes at a time when shipments of sunflower oil from Russia and Ukraine are facing major disruptions. Both countries are the top suppliers of sunflower oil in India. About 150,000 tons of sunflower oil deliveries were due for August and September and traders estimate that the war has caused the delay.
This will lead to a reduction in sunflower import into the country in August to around 180,000 tones from 251,639 tones of July. This would be the smallest since February 2026.
Soyoil Becomes a More Attractive Option
The increasing demand of soyoil is also due to its high price. However, soyoil prices are much closer to palm oil at about $50 per ton compared to over $100 earlier. This has driven up the demand for soyoil, making it a more favourable choice for Indian refinery.
There is also a good festival season demand for edible oil among Indian buyers. Edible oil imports were also at a 10-month high in July with a total of 1.48 million tons. Imports of soyoil alone rose 31% by 498,881 tons from June.
According to traders, India has already booked almost 1.4 million tons of soyoil deliveries expected between September and December. Although Argentina and Brazil are still key suppliers, Indian buyers are also buying soyoil from other countries such as China, Egypt, Thailand and Turkey too.
Impact on India’s Edible Oil Market
The transition from soyoil illustrates how India’s food import structure can shift in no time, due to the turmoil in the world. Disruptions in the Black Sea are forcing Indian refiners to seek out other sources, and it is helping meet domestic demand because soyoil is cheaper.
El Niño worries and the potential effects on domestic oilseed production are another factor pushing up imports. Soyoil availability would help to maintain the edible oil market position in the domestic market, but retail prices would continue to be affected by global market price changes, shipping cost changes, and currency fluctuations.
The latest trend also reveals the dependence of India on import of edible oils from abroad and the arrival of geopolitical tension at the doorstep of India’s common edible-oils.
