India's Sunflower Oil Demand Declines 10%

India's refined sunflower oil consumption is projected to decline by approximately 10% in the current fiscal year. This downturn is attributed to supply chain disruptions caused by the ongoing Middle East conflict and increased logistics costs, which have led to higher prices for Sunflower oil. Consumers in India are expected to switch to more affordable alternatives such as Rice bran oil and Soybean oil. Despite the volume drop, revenues for sunflower oil refiners are anticipated to remain stable due to higher realizations. The industry's heavy reliance on imports from countries like Ukraine and Russia makes it vulnerable to global geopolitical developments, with longer shipping routes and increased war-risk insurance premiums contributing to higher landed costs for crude sunflower oil. S&P Global===CRISIL Ratings has analyzed this situation, noting that while inventory levels have decreased, strong balance sheets and hedging policies are helping refiners maintain stable credit profiles and profitability.