Delays in sunflower oil shipments. India is buying more palm oil

Sunflower oil shipments to India are delayed

Damage to port infrastructure on the Black Sea is hindering the transport of sunflower oil from Russia to India. A shipment of 20,000 metric tons has already been canceled, and shipments of another 60,000 metric tons are delayed. Russian exporters are seeking alternative routes via ports on the Baltic Sea, which adds about 10 days to transit time and increases shipping costs.

India needs to import about 250,000 metric tons of sunflower oil per month, but deliveries in October may total only 160,000 metric tons. The limited availability of the raw material is prompting importers to seek alternatives, especially during a period of increased demand for edible oils.

Indian importers are increasing their purchases of palm oil

Reduced sunflower oil shipments are causing India to buy more palm oil. In just three days, 150,000 metric tons of crude palm oil were purchased, with deliveries scheduled for November and December. These increased purchases coincide with the approaching holiday season, during which demand for edible oils is expected to rise.

Rising orders from India could reduce palm oil inventories in Indonesia and Malaysia and contribute to higher prices on the international market. The future situation will depend primarily on the availability of sunflower oil, transportation costs, and the pace at which delayed shipments are fulfilled.