Russia Becomes India's Top Sunflower Oil Supplier, Surpassing Ukraine

Russia has emerged as India's primary source of sunflower oil, a significant shift from its previous reliance on Ukraine. According to industry data, Russian sunflower oil shipments to India have increased dramatically, soaring twelvefold over the past four years. In 2024, India imported 2.09 million tonnes from Russia, a substantial leap from just 175,000 tonnes in 2021. This surge means Russia now supplies 56% of India's sunflower oil imports, up from around 10% in 2021.

Previously, Ukraine was India's main supplier, providing nearly 90% of its sunflower oil. However, the conflict disrupted Ukraine's access to Black Sea ports, forcing it to reroute supplies via land, which made shipments to India more costly and less reliable. Russia, on the other hand, maintained stable exports through its seaports, offering competitive pricing that appealed to the Indian market.

Sunflower oil is a key edible oil for India, with domestic production meeting less than 5% of the country's needs. India relies on imports for almost 60% of its cooking oil requirements. The price competitiveness of Russian sunflower oil helped it gain market share, even narrowing the gap with soybean oil.

Despite this trend, overall sunflower oil imports into India are expected to decline by about 13% this year due to a significant price rise, with sunflower oil costing $150 per tonne more than palm and soybean oil. However, Russia is projected to maintain its dominant share of 55-60% in the Indian market.

Impact This news impacts India's edible oil market by altering supply dynamics, potentially influencing consumer prices and inflation. Companies involved in the import, processing, and packaging of edible oils may see shifts in their supply chain costs and strategies. India's trade balance could also be affected by the increased reliance on a single dominant supplier for a key commodity. Impact Rating: 7/10

Difficult terms Crude: In the context of Moscow's oil, it refers to unrefined petroleum oil. Crude oil is a naturally occurring liquid found beneath the Earth's surface that can be refined into various products like gasoline and diesel. Sunflower oil: A non-volatile oil pressed from the seeds of the sunflower. It is widely used as a cooking oil and in food products. Supplier: A person or company that provides goods or services to another entity. Shipments: Goods transported in bulk by ship, aircraft, or other vehicles. Industry data: Statistics and information collected and analyzed by organizations within a specific business sector. CEO (Chief Executive Officer): The highest-ranking executive in a company, responsible for making major corporate decisions. Solvent Extractors’ Association of India (SEA): An industry body that represents manufacturers of edible oils and related products in India, advocating for their interests. Imports: Goods brought into a country from abroad for sale or use. Agricultural exports: Farm products that are sold to other countries. Seaports: Harbors or areas on a coast where ships load and unload cargo. Conflict: A prolonged period of armed struggle and fighting between countries or groups. Redirected: Diverted or sent to a different destination or course. Predictable: Able to be foreseen or known in advance; reliable. Assured supply route: A reliable and guaranteed pathway for delivering goods or services. Competitive rates: Prices that are attractive and lower compared to those offered by rivals. Industry delegations: Groups of representatives from companies within the same industry who travel to meet, discuss business, and explore trade opportunities. Edible oils: Oils derived from plant or animal sources that are suitable for consumption and used in cooking and food preparation. Domestically: Within one's own country or region. Palm oil: A vegetable oil derived from the fruit of oil palms, widely used in food manufacturing and other industries. Soyabean oil: A vegetable oil extracted from the seeds of the soybean plant, commonly used for cooking and in processed foods. Cultivation: The process of growing plants, crops, or agricultural produce. Pricing advantage: A benefit gained from selling a product or service at a lower price than competitors, making it more appealing to buyers. Turnaround: A significant change in direction or performance, often from a negative to a positive state. Premium: An amount added to the usual price or value of something, often due to higher quality, demand, or desirability.