India’s soyoil imports set for record high in August on festive demand, supply disruptions

New Delhi: India’s soyoil imports are poised to hit a record high this month as competitive prices drive refiners to stock up for the festive season, while disruptions to sunflower oil shipments amid the Russia-Ukraine war push buyers to switch oils, dealers said.

Soyoil imports in August are likely to rise to 620,000 metric tons, according to four traders directly involved in trade deals. That’s nearly 46% above the average monthly imports of 424,549 tons so far in the current marketing year, which began in November.

The traders, who did not wish to be named in line with company policy, cited two key factors behind the surge.

First, soyoil has become competitively priced compared to other edible oils, prompting refiners to increase purchases ahead of higher demand during upcoming festivals. Second, ongoing disruptions to sunflower oil shipments due to the Russia-Ukraine war have forced buyers to pivot to alternatives, with soyoil emerging as the preferred substitute.

The spike would mark the highest monthly soyoil import volume on record for India, one of the world’s largest edible oil importers.

Industry participants expect elevated buying to continue through the festive quarter if price gaps and supply constraints persist.