India's Sunflower Oil Imports To Fall As Black Sea Grain Deal Expires

12 August 2023

India’s sunflower oil imports are likely to fall in the coming months as Russia has withdrawn itself from the Black Sea grain deal. The prices of oil rose after the Russian Federation discontinued its stance on the grain export deal with Ukraine as it expired. The Black Sea grain deal allowed Ukrainian shipments of commercial food and fertilizer to pass through Russia’s Black Sea, following the year-old Russian invasion of Ukraine. The shipments of the same commodities belonging to Russia were also a part of the export deal.

Biggest Sunflower Oil Supplier

India is among the biggest importers of sunflower oil in the world due to the huge demand for cooking oil. India imports about 21% of the world’s total sunflower oil on average and is the top importer of sunflower oil in the world, according to global import-export data 2022.

According to the shown India import data 2022, the top trading partners for India’s sunflower imports are—Ukraine ($2.2 billion), followed by Russia ($1.6 billion), Argentina ($1.4 billion), Turkey ($182.4 million), Bulgaria ($167.7 million), with other countries as shown in the list.

It can be observed that Ukraine and Russia are the biggest suppliers of sunflower oil to India. As per the evaluation of the import data of India from our dashboard, both countries account for 67.87% of the total share of all countries exporting sunflower oil to India for the year 2022.

Argentina is also among the top suppliers of sunflower oil to India, as seen in the data shown above. The country is the third-largest supplier of sunflower oil, with a total value of Indian imports amounting to $1.4 billion. Argentina can be considered an alternative for India.

Import Alternatives For India

The shipments of sunflower oil from both countries, Russia and Ukraine, will not reach Indian ports, resulting in falling imports of sunflower oil. This will mean that India might have to look for alternative sources of sunflower oil to fulfil the demand in the domestic market.

Here is a list of the top fats and oils imported from other countries in India for the year 2022. The names featured in the list can be considered an alternative to the sunflower oil supplies in India, depending on the nature and purpose of the particular commodity.

As per India imports 2022, the top imports in Chapter 15 (Vegetable, Animal Fats & Oils) are—Palm Oil ($20.4 billion), Soya Bean Oil ($10.2 billion), Cotton Seed Oil ($5.8 billion), Coconut Oil ($201.3 million), Jojoba Oil ($177.6 million), and others as shown in the list above.

Palm oil and soya bean oil are other alternatives to sunflower oil for India. According to some sources, Indian importers are claiming that exporters from the Black Sea offered competitive prices on imports that helped in stocking up sunflower oil.

However, as the stock would begin to fade away, the Indian importers would need to look for an alternative to keep the application of oils in the Indian consumers’ houses. India would turn to import palm oil and soya bean oil due to the falling number of shipments then.