India, April 3 -- Will likely lead consumers to switch to cheaper substitutes such as rice bran and soybean oils

Indian refined sunflower oil volume is poised to decline ~10 per cent in the current fiscal, due to twin headwinds that will dampen demand. Firstly, supply-chain disruptions triggered by the Middle East conflict, and secondly, higher prices resulting from the pass-through of increasing logistics costs, will likely lead consumers to switch to cheaper substitutes such as rice bran and soybean oils. Revenues are, however, expected to remain flat during the year, as higher realisations would offset the volume drop.

Profitability of sunflower oil refiners should also remain stable with inventory gains from previously acquired low-...