Russia to Boost Sunflower Oil Supplies to India
Russian Sunflower Oil Gaining Market Share in India
Sunflower oil prices in Ukraine have been falling as Russia ramps up its production, challenging Ukraine's dominance in traditional sales markets. A strong sunflower harvest in Russia has positioned the country to boost its sunflower oil exports, especially to India, which is one of the largest buyers globally.According to the IKAR agency, Russia has seen mixed results in its oilseed production this year. While rapeseed production increased to 4.7 million tonnes and soybean production rose to 6.9 million tonnes, sunflower production dipped to 15.8 million tonnes from last year's 17.4 million tonnes. Despite this decline, Russia remains a key supplier of sunflower oil globally.
India’s Import Plans for 2025
The Sunflower Oil Producers Association of India forecasts a reduction in the country's sunflower oil imports for 2025, from 3.5 million tonnes in 2024 to 3.2 million tonnes. Of this, Russia is expected to supply 1.6 million tonnes, representing 50% of India’s total sunflower oil imports. Additionally, India plans to buy 200,000 tonnes of soybean oil from Russia.Russia recently increased its export duty on sunflower oil from $0,02-0,03 per kg to $0,08 per kg, impacting its price competitiveness. This move has slightly boosted the attractiveness of Ukrainian and Argentine sunflower oil in global markets.
India’s 2023/24 Sunflower Oil Import Breakdown
In the 2023/24 marketing year, which ended in March 2024, India imported 3.5 million tonnes of sunflower oil. Key suppliers were:- Russia: 1.12 million tonnes (35.49%)
- Romania: 946,000 tonnes (29.93%)
- Argentina: 576,000 tonnes (18.24%)
- Ukraine: 278,000 tonnes (8.81%)
- Turkey: 180,000 tonnes (5.71%)
- Bulgaria: 34,000 tonnes (1%)
Price Trends in Sunflower and Vegetable Oils
According to SovEcon, sunflower prices in Russia's European regions declined by approximately $0,44 per kg. Export prices for Russian sunflower oil dropped by and now standing at $1,11 per kg FOB, while soybean oil fell by $0,013 per kg to $1,15 per kg FOB.In Ukraine, sunflower oil prices for delivery to Black Sea ports also declined approximetly by $1,10 per kg. Despite this, traders have become cautious due to uncertainty in vegetable oil price trends.
Conclusion
Russia's increased sunflower oil supplies to India mark a shift in global trade dynamics. While higher export duties may challenge its competitiveness, the rising demand from India and robust production keep Russia well-positioned in the sunflower oil market.ÂClick here to reach our trading platfrom CMBroker
