India seeks alternative vegetable oils as Black Sea disruptions hit sunflower oil supplies

India, the world’s largest buyer of sunflower oil, is urgently seeking alternative vegetable oil supplies as attacks in the Black Sea region disrupt imports while the country’s own oilseed crops are suffering from a weak monsoon season.

According to traders, shipments from the two leading exporters, Russia and Ukraine, are being delayed by up to 60 days, with prices continuing to rise. As a result, Indian importers are increasing purchases from South American suppliers while shifting more demand toward palm and soybean oils.

“The situation in the Black Sea is definitely affecting us,” said Mannan Khan, Director of MK Agrotech Pvt. Ltd. He noted that dozens of the company’s shipments, particularly from Russia, have been delayed. As violence in the Black Sea region intensified over the past month, the company was forced to source about half of its sunflower oil imports from Argentina and has also started increasing purchases of Australian canola oil.

The diversification of supplies is expected to help meet rising demand ahead of India’s festival season, which begins next month. However, it is also likely to tighten the already constrained global vegetable oil market, which is under pressure from a strong El Niño and growing biofuel demand, potentially driving consumer prices even higher.

Sunflower oil accounted for about one-fifth of India’s total vegetable oil imports during the first half of the year, with approximately 1 mln tons supplied from the Black Sea region. Russia and Ukraine together accounted for 63% of global sunflower oil exports last season, according to the U.S. Department of Agriculture (USDA).

Ukraine has recently intensified drone strikes on Russia-linked shipping infrastructure and vessels in the Black Sea, prompting Moscow to warn that navigation in the area is unsafe. At the same time, one of Ukraine’s largest sunflower oil exporters suspended operations last week following intensified Russian missile and drone attacks on the country’s port and logistics infrastructure.

The disruptions have already pushed India’s domestic sunflower oil price index up by about 6% in July, widening its premium over palm and soybean oils. According to Aashish Acharya, Vice President of Patanjali Foods Ltd., demand is now gradually shifting toward these alternative vegetable oils.

Palm oil imports into India are expected to increase by around 40% month-on-month in July to 700,000 tons, while soybean oil imports are projected to remain elevated at approximately 500,000 tons per month.

The situation is further complicated by India’s own oilseed production, as below-average monsoon rainfall has slowed planting, likely reducing domestic output and increasing the country’s dependence on imports. With global vegetable oil supplies already constrained, analysts expect India’s import demand to remain strong and international vegetable oil prices to stay firm, with further upside potential.

Tags: Ukraine, Russia, sunflower oil, Black Sea region, India, imports