Sunflower Oil Imports Hit by Russia-Ukraine War

Mumbai: India's imports of sunflower oil—a vital vegetable oil—are being severely disrupted by the intense ongoing conflict between Russia and Ukraine, the world's two leading exporters of the commodity. Currently, imports are primarily sourced from the Latin American nation of Argentina. Russia and Ukraine are launching heavy attacks on each other's ports and commercial vessels in the Black Sea region, effectively bringing the export shipment process for sunflower oil and other agricultural products to a near-standstill.

Export deals for sunflower oil from Russia to India are either being cancelled or facing shipment delays. It is understood that a shipment of 20,000 tonnes was cancelled due to infrastructural damage at the port, while the dispatch of an additional 60,000 tonnes of oil cargo is facing undue delays.

Amidst the fierce conflict and the threat of attacks, vessel movement via the Black Sea route has declined, while transportation and insurance costs have risen. Russian exporters are now attempting to ship sunflower oil via Baltic Sea ports, including St. Petersburg and Ust-Luga.

However, this alternative route entails higher freight charges and an additional 10 days in transit time, likely putting further strain on supplies. India typically imports an average of 200,000 tonnes of sunflower oil per month, but volumes are expected to drop to around 160,000 tonnes in October. Imports had already declined during August and September. India relies heavily on sunflower oil imports.