Russia Becomes India’s Top Supplier of Sunflower Oil

Russia has overtaken Ukraine to become India’s largest supplier of sunflower oil, driven by stable supply routes and competitive pricing. According to industry data, Russian shipments to India have surged twelvefold over the past four years, now accounting for nearly 56% of India’s total sunflower oil imports. The shift highlights the impact of disrupted trade routes from Ukraine and India’s pursuit of supply chain reliability in essential commodities.

From Ukraine to Russia: A Major Trade Shift

Before the Ukraine conflict, India sourced most of its sunflower oil from Ukrainian seaports along the Black Sea. However, after the war began, Ukraine’s exports were rerouted through Europe by rail and road, significantly raising costs and reducing shipment reliability. Russia, on the other hand, maintained uninterrupted exports through its ports, offering India a more consistent and cost-effective supply chain. This reliability made Russian oil the preferred choice for Indian importers.

India’s Growing Dependence on Russian Supplies

Data shows that India imported over 2.09 million tonnes of sunflower oil from Russia in 2024, compared with only 175,000 tonnes in 2021. In 2021, Russia’s share stood at just 10%, but it soared to 56% by 2024. Industry leaders, including officials from the Solvent Extractors’ Association of India (SEA), attribute this growth to stable pricing, dependable delivery schedules, and strengthened trade relations following multiple business delegations between the two countries.

India’s Edible Oil Market Dynamics

Sunflower oil is India’s third-most consumed edible oil after palm and soybean oil. The country imports nearly 60% of its total cooking oil requirement, as domestic production remains low. Palm oil accounts for about half of these imports. Interestingly, sunflower oil gained popularity in 2023–2024 when its prices fell below palm oil, narrowing the price gap with soybean oil. However, a recent $150 per tonne price rise is expected to reduce India’s sunflower oil imports by 13% this year, though Russia’s share is likely to remain steady at around 55–60%.

Exam Oriented Facts

• Russia now supplies 56% of India’s sunflower oil imports, surpassing Ukraine.
• India imported 2.09 million tonnes of sunflower oil from Russia in 2024.
• Ukraine lost market share due to Black Sea port disruptions during the war.
• India imports nearly 60% of its total cooking oil, including palm, soybean, and sunflower oils.

Trade Outlook and Market Implications

The strengthening of India-Russia edible oil trade signals a broader diversification in India’s import strategy amid global supply chain disruptions. With Russia offering competitive rates and assured delivery, its dominance in India’s sunflower oil market is set to continue. At the same time, industry experts caution that high prices may limit overall import volumes, making price stability and long-term trade cooperation key to sustaining this strategic agricultural partnership.