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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 commodities.
From Ukraine To Russia: A Major Trade Shift
Before the Ukraine conflict, India sourced most of its sunflower oil requirements from Ukrainian seaports along the Black Sea. But after the war began, Ukraine's exports were rerouted through Europe via rail and road, leading to a significant rise in costs and reduced shipping reliability. Russia, by contrast, maintained uninterrupted exports through its ports, giving India a more stable and cost-effective supply chain. This reliability has made Russian oil the preferred choice for Indian importers.
India's Growing Reliance On Russian Supplies
Data shows that India imported more than 2.09 million tonnes of sunflower oil from Russia in 2024, compared with just 175,000 tonnes in 2021. Russia's share stood at only 10% in 2021 but climbed to 56% by 2024. Industry leaders, including officials from the Solvent Extractors' Association of India (SEA), attribute this growth to stable prices, reliable delivery schedules and strengthened trade ties following multiple trade delegation visits between the two countries.
Dynamics Of India's Edible Oil Market
Sunflower oil is India's third most-consumed edible oil after palm oil and soybean oil. The country imports nearly 60% of its total cooking oil requirements due to low domestic production, with palm oil accounting for around half of those imports. Notably, sunflower oil gained popularity in 2023-2024 when its prices fell below palm oil, narrowing the price gap with soybean oil. However, a recent price increase of $150 a tonne is expected to cut India's sunflower oil imports by 13% this year, although Russia's market share is likely to remain steady at around 55-60%.
Exam-Oriented Facts
Trade Outlook And Market Impacts
The strengthening of edible oil trade between India and Russia points to a broader diversification in India's import strategy amid global supply chain disruptions. With Russia offering competitive prices and guaranteed delivery, its dominance of India's sunflower oil market looks set to continue. At the same time, industry experts warn that rising prices could limit overall import volumes, making price stability and long-term trade cooperation essential to sustaining this strategic agricultural partnership.
Source: Al Mal Forum