India emerges as a key destination for Russian sunflower oil exports

In 2024, Russia nearly tripled its sunflower oil exports to India compared to the previous year. Barring significant shifts in the global market, analysts foresee continued growth in this area.

India has long been a major buyer of Russian oil and fat products. Vegetable oils are a dietary staple, with consumption rising annually. Russia supplies over a third of India's total sunflower oil imports, according to Mikhail Maltsev, Executive Director of the Oil and Fat Union of Russia.

From September 2023 to June 2024, India's imports of Russian sunflower oil tripled compared to the same period in 2022–23. India now accounts for 32% of Russia's total sunflower oil exports. The Oil and Fat Union of Russia forecasts that by season's end, Russian vegetable oil shipments to India will reach almost 17 lakh tonnes, with sunflower oil comprising nearly 15 lakh tonnes.

This surge highlights India's position as the world's second-largest consumer of vegetable oils, with annual imports reaching around 170 lakh tonnes, of which sunflower oil accounts for 10–15%. Furthermore, the declining price of Russian sunflower oil has made it more attractive compared to palm oil, traditionally the most common edible oil in India. Crude sunflower oil was priced at approximately $940 per tonne for June delivery, while soybean oil and palm oil were priced at around $1,015 and $950 per tonne, respectively.

Analysts predict that by 2030, Russian sunflower oil could make up as much as 40% of India's total sunflower oil imports. The combined export potential of sunflower and soybean oils from Russia could exceed $200 crores. However, the Indian government’s food security programme, aimed at reducing dependence on imported edible oils, may influence future import volumes from Russia.

Source: sfera.fm