Rising Oil Prices Drive Sunflower Oil Supply Concerns in India

India’s Sunflower Oil Imports Drop 51% in February as West Asia Conflict Drives Prices Higher​

Black Sea Supply Disruptions and Higher Freight Costs Impact Trade​

India’s imports of crude sunflower oil plunged by 51 percent to 1,45,000 tonnes in February, as geopolitical tensions and supply disruptions pushed prices higher and constrained shipments, according to the Solvent Extractors' Association of India (SEA).

The sharp decline in imports comes amid ongoing conflict in West Asia and disruptions to shipping routes linked to the Black Sea region, both of which have increased freight costs and tightened global supplies.

Import Prices Rise Sharply Amid Supply Concerns​

SEA said the average import price of crude sunflower oil increased by 17 percent year on year to USD 1,420 per tonne in February, compared with USD 1,216 per tonne a year earlier.

The depreciation of the Indian rupee also added to import costs. The currency has weakened by 4.2 percent over the past year, further raising the landed price for refiners and traders.

Russia and Ukraine remain the dominant suppliers of sunflower oil to India, accounting for between 70 percent and 90 percent of imports. Supply disruptions from the Black Sea region, combined with tensions affecting the Red Sea and Suez Canal shipping routes, have added pressure to the supply chain.

SEA noted that potential disruptions in the Red Sea and Suez Canal could delay shipments, increase logistics costs, and impact the availability of sunflower oil in the market.

Imports Decline in Current Oil Year​

During the first four months of the 2025 to 26 oil year, which began in November 2025, India’s sunflower oil imports dropped to 9.04 lakh tonnes from 11.2 lakh tonnes in the same period a year earlier.

SEA said concerns about disrupted shipments from Russia and Eastern Europe, along with rising freight costs for other edible oils such as palm oil, have pushed prices higher and forced traders and consumers to closely monitor supply chain risks.

India Explores Alternative Supply Sources​

To reduce reliance on Black Sea exporters, India has been holding discussions with Mercosur nations including Argentina, Brazil, Paraguay, and Uruguay to secure long term contracts for soybean oil and sunflower oil supplies.

Oilmeal Export Risks and Rising Biodiesel Demand​

The industry body also warned that logistical disruptions could affect India’s oilmeal exports, particularly shipments to Southeast Asia and the Middle East. These regions account for nearly 20 percent of the country’s total oilmeal exports.

At the same time, SEA highlighted rising interest in palm oil based biodiesel among biofuel producers, driven by higher crude oil prices. This trend could support near term demand for palm oil in Southeast Asia.

Vegetable Oil Imports and Stocks​

Despite the drop in sunflower oil shipments, India’s overall vegetable oil imports including edible and non edible oils rose by 6 percent in February compared with the previous year, reaching 53.24 lakh tonnes.

Palm oil imports stood at 8.47 lakh tonnes, while soybean oil imports were recorded at 2.99 lakh tonnes.

As of March 1, vegetable oil stocks in the country were estimated at 18.72 lakh tonnes, an increase of 85,000 tonnes from the previous month.