Consumption of sunflower oil is predicted to decrease by 4L tons

Due to a price adjustment brought on by a robust soy crop, consumers are expected to switch from sunflower oil to soybean oil, resulting in a 3–4 lakh tonne decrease in the nation’s use of sunflower oil during the current fiscal year.

It is important to note that palm oil, which accounts for around 40% of the industry’s volume, dominates the edible oil market in India. Sunflower and soybean oils follow with 20% and 15% of the market share, respectively. The price fluctuations of sunflower oil’s alternatives, such as soybean and palm oils, have an impact on demand for the oil.

Because of the large crop, the price of soybean oil is expected to correct by $100 per tonne this fiscal year. Sunflower oil volume would drop to 28–29 lakh tonne in 2024–25 from about 32 lakh tonne in 2023–2024 as a consequence of the demand shift toward soybean oil, according to Jayashree Nandakumar, Director of Crisil Ratings.

India imports more than 95% of its sunflower crude needs and has sizable facilities for processing sunflower oil. As shipping and freight costs remain high due to the Red Sea issue, Crisil predicts that despite decreased volume, oil prices will stay strong this fiscal year. This will keep the price of refined sunflower oil at current levels, along with domestic demand. It is anticipated that the industry will expand negatively by 6–8% in the current fiscal year due to decreased volume and firm pricing.

India now consumes between 225 and 230 lakh metric tons of edible oils annually, of which roughly 100 lakh metric tons are produced domestically. About 55% of the difference between supply and demand is filled by imports.