Even as Moscowโs crude dominates headlines, itโs not the only Russian oil flowing into India. Russia has now surpassed Ukraine to become Indiaโs biggest supplier of sunflower oil, with shipments soaring twelvefold over the past four years, according to industry data cited by ET.โRussia is the largest and most reliable source of sunflower oil in the world. We get advantage of supply chain reliability,โ Sanjeev Asthana, CEO of Patanjali Foods and president of the Solvent Extractorsโ Association of India (SEA) told ET.Back in 2021, Russian sunflower oil made up only around 10% of Indiaโs total sunflower oil imports. By 2024, that share had jumped to 56%. India purchased 2.09 million tonnes of sunflower oil from Russia in the calendar year 2024, compared to just 175,000 tonnes in 2021.
How did the shift happen?
Before the war, Ukraine was Indiaโs main supplier of sunflower oil, shipping nearly 90% of its agricultural exports through seaports. However, once the conflict began, Ukraine redirected most of its sunflower oil to European countries via road and rail after its access to Black Sea ports was blocked. Industry officials said this rerouting made shipments to India costlier and less predictable.Russia, meanwhile, continued exporting comfortably through its seaports, giving Indian buyers a more stable and assured supply route. โThey were offering us competitive rates, which is the requirement of the Indian market,โ said Sandip Bajoria, president of the International Association of Sunflower Oil.Exchanges between industry delegations from both countries in recent months have further strengthened the trade link.
Indiaโs reliance on foreign oils
Sunflower oil is among Indiaโs top three edible oils, yet less than 5% of what the country consumes is grown domestically. The country relies on imports to meet almost 60% of its cooking oil needs. Palm oil accounts for nearly half of that, followed by soyabean oil and sunflower oil. Farmers in the country scaled back sunflower cultivation in the 1990s, after cheaper imported oils began entering the market.Sunflower oil became popular once again in 2023 and 2024, when for the first time it became cheaper than palm oil, according to industry officials, cited by ET. The new pricing advantage helped Russian shipments narrow the market gap between sunflower oil and soyabean oil. โThe share of sunflower oil was a distant third after soyabean oil. The Russian supplies have reduced this gap significantly,โ Bajoria said.This turnaround may not hold through the year. Sunflower oil imports are expected to decline by about 13% because of a sharp price rise. โThe overall imports of sunflower oil will decline this year as there is a premium of $150 per tonne on sunflower oil over the palm oil and soyabean oil,โ Bajoria added. โHowever, the share of Russia will remain the same at around 55-60%.โIn September, a delegation from SEA travelled to Russia to explore deeper trade cooperation.