Domestic Consumption of Sunflower Oil Expected to Decline by 10 Percent

03-Apr-2026 03:33 PM

Mumbai. A leading rating agency has stated that India’s sunflower oil consumption may decline by around 10 percent during the financial year 2026–27 due to two major reasons. First, the ongoing crisis in the Middle East could disrupt supply chains, and second, rising shipping costs may make imports more expensive. As a result, many consumers may shift from the relatively expensive sunflower oil to cheaper alternatives such as soybean oil and rice bran oil.

It is noteworthy that India produces a negligible quantity of sunflower oil compared to its consumption, making the country heavily dependent on imports. Sunflower oil is mainly imported from Russia, Ukraine, and Argentina. According to the rating agency, the overall import expenditure on sunflower oil may not change significantly because any reduction in import volumes could be offset by higher prices.

The agency also stated that the margins of sunflower oil refiners may remain stable. Existing stocks imported earlier at lower prices may support profitability, while future imports at higher prices could reduce margins.

Crude mineral oil prices are rising, and the West Asia crisis is creating disruptions in imports. Freight charges for ships and containers have increased significantly. As a result, refiners may face limited stocks of crude sunflower oil in the near future and will have to spend more on imports.