- Surging Sunflower Oil Demand: India’s sunflower oil imports jumped 145% month-on-month in December to 349,000 tonnes, a 17-month high.
- Palm Oil Under Pressure: Palm oil imports fell 20% to 507,000 tonnes, hitting an eight-month low as refiners shifted to competing oils.
- Overall Veg Oil Imports Higher: Total vegetable oil imports rose 17% to 1.38 million tonnes, driven by sunflower and soybean oil strength.
- Supportive for Black Sea Exporters: Higher Indian demand is bullish for Black Sea sunflower oil suppliers, especially Russia and Ukraine.
India’s December Vegetable Oil Import Shift
India’s vegetable oil import mix shifted sharply in December, with buyers significantly increasing purchases of sunflower and soybean oils while trimming palm oil arrivals. Sunflower oil imports surged to 349,000 tonnes, a 145% increase from November and the highest intake in 17 months, according to data from the Vegetable Oil Exporters Association of India (SEA) reported by Reuters.
The upswing in sunflower oil came alongside a 20% decline in palm oil imports, which fell to 507,000 tonnes. This marked an eight-month low and the weakest palm oil performance since April 2025, as Indian refiners pivoted toward alternative soft oils amid seasonally weaker winter demand for palm. Soybean oil inflows also strengthened, rising 36% to 505,000 tonnes and reaching a three-month high.
Overall, India’s total vegetable oil imports climbed 17% month-on-month to 1.38 million tonnes in December. As the world’s largest buyer of vegetable oils, India sources sunflower oil mainly from Argentina, Brazil, Russia, and Ukraine, while palm oil is predominantly supplied by Indonesia and Malaysia.
Import Volumes by Oil Type – December
| Oil Type | December Volume (tonnes) | Month-on-Month Change |
|---|---|---|
| Sunflower Oil | 349,000 | +145% |
| Palm Oil | 507,000 | -20% |
| Soybean Oil | 505,000 | +36% |
| Total Vegetable Oils | 1,380,000 | +17% |
Market Impact and Black Sea Exporter Outlook
The sharp rebound in Indian sunflower oil demand is supportive for Black Sea exporters, particularly Russia and Ukraine, which are key suppliers to this market. With India’s vegetable oil inventories having been reported at five-month lows, the renewed buying interest underpins firmer sunflower oil pricing and improved export prospects from the region.
The seasonal pivot away from palm oil toward sunflower and soybean oils during the winter months creates additional room for Black Sea-origin shipments into India. While lower palm oil imports may weigh on tropical oil prices, the relative shift in demand is constructive for alternative oils, including Black Sea sunflower oil, and could help sustain a tighter balance for soft oils in the months ahead.
Source: Market Data
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