News Capsule: Sunflower Oil Demand in India May Drop 10% Amid Rising Costs
03-Apr-2026 11:27 AM
News Capsule: Sunflower Oil Demand in India May Drop 10% Amid Rising Costs
★ India’s sunflower oil consumption is expected to decline by around 10% in the current fiscal due to geopolitical tensions and rising prices, according to a report by CRISIL Ratings.
★ The decline is driven by two key factors—supply chain disruptions caused by the ongoing West Asia conflict and higher prices due to increased logistics and import costs.
★ As a result, consumers are likely to shift towards cheaper alternatives such as rice bran oil and soybean oil.
★ India’s sunflower oil industry is heavily dependent on imports, mainly from Ukraine and Russia, making it vulnerable to global disruptions. Longer shipping routes, higher freight charges, and rising war-risk insurance premiums have significantly increased landed costs.
★ Retail prices have also risen, further dampening demand. Despite the expected drop in consumption, revenues of refiners are likely to remain stable as higher prices may offset lower volumes.
★ Demand pressure is expected to persist in the near term, with consumption shifting toward more affordable edible oils unless global supply conditions improve.