India’s soyoil imports are set to hit a record high in August, with purchases likely to reach 620,000 metric tons — nearly 46 per cent above the average monthly imports of 424,549 tons so far in the current marketing year, which began in November, according to four traders directly involved in trade deals. Competitive prices are prompting refiners to boost purchases for festive demand, while disruptions to sunflower oil shipments due to the Russia-Ukraine war are pushing buyers to switch oils, the dealers said. The traders did not wish to be named in line with their companies’ policies.
Soyoil demand surges on price competitiveness
Soyoil prices are very competitive. At the same time, there are disruptions to sunflower oil shipments. That is making soyoil even more attractive.
— Sandeep Bajoria, chief executive, Sunvin Group
The buying spree is not limited to August. According to a New Delhi-based dealer, Indian imports are likely to exceed 600,000 tons even in September, and India has already bought nearly 1.4 million tons for shipment between September and December. Ample soyoil supplies and competitive prices are prompting India to step up purchases amid concerns that local oilseed production could be affected by an El Nino weather pattern, the dealer added.
Sunflower oil shipments disrupted by Black Sea conflict
In recent months, Russia and Ukraine have increasingly targeted each other’s port and maritime infrastructure in and around the Black Sea, disrupting grain and vegetable oil shipments and reducing export capacity, according to Reuters. Russia and Ukraine account for most of India’s sunflower oil imports, which are likely to fall to 180,000 metric tons in August — the lowest since February 2026 and down 28 per cent from a month earlier, the dealers said. Around 150,000 tons of sunflower oil originating from the Black Sea and scheduled for shipment in August and September have been delayed because of the conflict, one dealer said.
Buyers in southern India typically prefer sunflower oil, but import disruptions are prompting them to switch to soyoil, the dealers said. The ports now receiving soyoil shipments include:
- Kandla and JNPT on the west coast
- Krishnapatnam and Kakinada in southern India
Price dynamics favour soyoil over palm and sunflower
The premium for soyoil over palm oil has narrowed to around $50 a metric ton from more than $100 in April, a New Delhi-based dealer said, as palm oil prices have risen on concerns that unfavourable weather could hit production and on Indonesia’s move to increase use of palm oil for biofuels. The narrower premium is making soyoil more attractive to price-sensitive Indian buyers, the dealer said.
For forward shipments, the pricing picture is similar. India is buying soyoil even for shipments several months out, as the landed cost of palm oil and soyoil is nearly the same for October-December shipments, while sunflower oil is trading at a premium of nearly $200 per ton, the dealer said.
| Metric | August 2026 projection | Change / comparison | Source |
|---|---|---|---|
| India soyoil imports | 620,000 tons | +46% vs monthly avg of 424,549 tons | Four traders, via Reuters |
| India sunflower oil imports | 180,000 tons | -28% from previous month; lowest since Feb 2026 | Dealers, via Reuters |
| Delayed Black Sea sunflower oil (Aug-Sep) | 150,000 tons | Conflict-related delay | One dealer, via Reuters |
| Soyoil-over-palm oil premium | ~$50/ton | Narrowed from >$100/ton in April | New Delhi-based dealer, via Reuters |
| Sunflower oil premium (Oct-Dec shipments) | ~$200/ton | Above palm and soyoil | New Delhi-based dealer, via Reuters |
Supply sources expand beyond Argentina and Brazil
Argentina and Brazil usually account for the bulk of India’s soyoil imports, but India is now sourcing the oil from destinations such as China, Egypt, Thailand and Turkey for prompt shipments, according to the New Delhi-based dealer. India imports palm oil mainly from Indonesia, Malaysia and Thailand, Reuters reported.
The record soyoil buying reflects a broader recalibration of India’s edible oil trade: the conflict-driven reduction in Black Sea sunflower exports has pushed Indian buyers to secure alternative supplies months in advance, while palm oil prices have risen on weather and biofuel policy concerns. Dealers said soyoil imports are likely to exceed 600,000 tons even in September, with nearly 1.4 million tons already booked for shipment between September and December.
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