For the first time in history, Argentina’s share of India’s sunflower oil imports surpasses Ukraine’s

In recent years, the global sunflower oil market has been undergoing a significant redistribution. The Black Sea region has been losing market share due to lower production and ongoing logistical challenges, while Argentina has been successfully expanding into both new and existing export markets.

According to USDA data, Argentina’s share of global sunflower oil exports increased from 7% in the MY 2016/17 to 10% in 2024/25 and could reach 13% in 2026/27. By comparison, Ukraine and Russia account for 33% and 31% of global exports, respectively. As a result, Argentina is becoming an increasingly strong competitor to the two Black Sea suppliers.

The shift has been particularly evident in India, the world’s largest sunflower oil importer. A decade ago, Ukraine was virtually the sole supplier of sunflower oil to the Indian market. However, following Russia’s full-scale invasion of Ukraine, Russia significantly expanded its exports to India, increasing shipments from 451,000 tonnes in 2021/22 to 1.66 million tonnes in 2023/24.

At the same time, Argentina steadily increased its sunflower oil exports to India, raising shipments from 380,000 tonnes in 2021/22 to 415,000 tonnes in 2022/23 and 515,000 tonnes in 2023/24.

During September–April of the MY 2025/26, Argentina exported a record 530,000 tonnes of sunflower oil to India, surpassing Ukraine for the first time ever. Ukraine supplied only 344,000 tonnes during the same period.

Argentina’s growing sunflower exports have been supported by production challenges in the Black Sea region, favorable domestic tax policies, and changing climatic conditions that have encouraged sunflower cultivation.

The war between Russia and Ukraine significantly reduced global sunflower oil supplies, prompting importers to diversify sourcing strategies. This created new opportunities for Argentina to expand its presence in key markets.

Domestic tax policy has also played a crucial role. In the 1990s, export duties on the sunflower sector were minimal, encouraging processing investments. After 2002, duties rose sharply, reaching as high as 37–39%, which led farmers to switch acreage from sunflower to soybeans. Since 2015, export taxes have gradually declined, and during 2024–2025 the new administration reduced duties from 7% to 4.5% on sunflower seeds and to 4% on sunflower oil. In contrast, duties on the soybean complex remain around 22%, creating a processing margin advantage of $150–200 per tonne in favor of sunflower.

By 2028, Argentina plans to further reduce export duties to 3% on sunflower seeds and 2.5% on sunflower oil and meal. Producers have already begun expanding planted area, including in non-traditional growing regions, which is expected to reshape the country’s oilseed sector.

Argentina increased sunseed production from 5.6 million tonnes to 7 million tonnes in 2025/26, while output is projected to reach 8 million tonnes in 2026/27. Sunseed processing rose from 4.8 million tonnes to 5.5 million tonnes in 2025/26 and could exceed 6 million tonnes in 2026/27.

Part of the country’s soybean processing infrastructure has already been converted to handle sunflower seeds. Argentina currently operates 17 dedicated sunseed crushing plants, while another 11 facilities are technically capable of processing sunflower. Total annual sunflower processing capacity is estimated at 6.6 million tonnes.

The availability of underutilized soybean infrastructure has allowed Argentina to rapidly expand sunflower oil production and exports without major investments in new facilities. However, if sunflower processing reaches 6 million tonnes in 2026/27 as expected, existing capacity will be nearly fully utilized. Further export growth would then require either additional conversion of soybean plants or investment in new processing facilities.

Tags: Argentina, Ukraine, sunflower oil, India