Growing Demand for Sunflower Oil Amid Lower Prices

A key player in India’s vegetable oil industry predicts a rise in sunflower oil imports, driven by its competitive pricing. This trend is expected to persist, reflecting broader market dynamics.

A senior official from the industry reported a notable 43 percent increase in crude sunflower oil imports. It was during the April to June 2024 quarter, totaling 10.50 million tonnes. This marks a significant rise compared to the same period the previous year.

Yearly Trends and Market Data

Data from the Solvent Extractors Association of India (SEA) indicate that in the current marketing season, from November 2023 to March 2024, sunflower oil imports reached 13.50 million tonnes. This volume is approximately 21 percent higher than during the corresponding months of the last season.

Adding these figures, the total sunflower oil imports from November 2023 to June 2024 are projected to reach 24 lakh tonnes. SEA also noted that in March 2024, the average import price of crude sunflower oil at Indian ports was $964 per tonne, with crude soybean oil at $995 per tonne, crude palm oil at $1018 per tonne, and RBD Palmolein at $988 per tonne.

Domestic Market And Consumer Preferences

According to the Consumer Affairs Department, the monthly average retail price of sunflower oil in the domestic market decreased slightly over the first quarter of 2024, from $1,67 per kg in January to $ 1,65 per kg in March.

Trade analysts observe that the demand for sunflower oil is swiftly growing in non-traditional consumption areas. This shift is largely due to the relative cost advantages of sunflower oil over palm oil. As of February, the price difference between these oils ranged from $20 to $40 per tonne. The narrowing price gap is attracting more consumers towards sunflower oil. Particularly as palm oil prices have been climbing due to reduced surplus stocks in Malaysia reaching a 10-month low.

The sunflower oil market in India, with import volumes expanding significantly. The ongoing price trends and consumer shifts are likely to influence the market landscape for vegetable oils in India, with sunflower oil positioned to gain a larger market share due to its cost-effectiveness and rising popularity among consumers.