Russia Becomes India’s Top Supplier of Sunflower Oil

• Russia has emerged as India’s largest supplier of sunflower oil, overtaking Ukraine for the first time. The shift, driven by stable supply routes and competitive pricing, marks a major change in India’s edible oil trade pattern. As per data from the Solvent Extractors’ Association of India (SEA), Russian shipments to India have increased twelvefold in the last four years, now accounting for 56% of total sunflower oil imports.

From Ukraine to Russia: A Trade Realignment

• Before the Russia–Ukraine conflict, India depended heavily on Ukrainian ports along the Black Sea for sunflower oil. However, after the outbreak of war, Ukraine’s exports were rerouted through Europe by rail and road, resulting in higher transportation costs and shipment delays. Russia, meanwhile, maintained uninterrupted exports through its ports, ensuring reliability and competitive prices. This consistency made Russian oil the preferred choice for Indian importers seeking stability in essential food supplies.

India’s Growing Dependence on Russian Imports

• In 2024, India imported around 2.09 million tonnes of sunflower oil from Russia, a sharp rise from 175,000 tonnes in 2021. Russia’s market share jumped from 10% to 56% during this period. According to industry officials, the growth stems from predictable pricing, regular shipping schedules, and improved bilateral trade relations, strengthened through multiple business delegations and energy partnerships.

India’s Edible Oil Landscape

• Sunflower oil ranks as India’s third most consumed edible oil after palm and soybean oil. The country imports about 60% of its total cooking oil needs due to low domestic production. Palm oil dominates imports, contributing roughly half of total edible oil shipments. Sunflower oil gained popularity in 2023–24 when its prices dropped below palm oil, narrowing the gap with soybean oil. However, a recent $150 per tonne price increase may reduce imports by about 13% this year, though Russia’s market share is expected to remain steady.

Exam Summary

• Top Supplier: Russia (56% of India’s sunflower oil imports)

• Import Volume (2024): 2.09 million tonnes from Russia

• Previous Supplier: Ukraine (lost share due to port disruptions)

• India’s Oil Imports: 60% of total domestic requirement

• Main Oils: Palm, Soybean, and Sunflower

Conclusion

The rise of Russia as India’s primary sunflower oil supplier reflects a strategic shift in trade partnerships amid global disruptions. While price fluctuations may influence demand, the reliability of Russian supplies ensures continued cooperation, reinforcing India’s focus on diversifying and securing its food import network.