The surge in trade between Russia and India in edible oils has taken centre stage, with Russia now emerging as the top supplier of sunflower oil to India. The shift from traditional supplier Ukraine signals a major reshuffle in global edible-oil trade. This article unpacks how the change came about, what’s driving it, and the implications for India’s oil-importing economy.
What’s happening?
- Russia has dramatically increased its exports of sunflower oil to India, growing twelve-fold over the past few years.
- As of H1 2025, India imported about 685,000 tonnes of sunflower oil from Russia, amounting to some US$815 million, making Russia the largest exporter of this oil-type to India.
- In the period Nov 2023–June 2024, data show India imported about 1.18 million tonnes of sunflower oil from Russia alone, out of total imports of about 2.46 million tonnes for that window.
- Prior to this shift, Ukraine occupied the top spot in supplying sunflower oil to India; now Russia has displaced it.
Why did this trade shift happen?
Price & supply advantages
- Russian sunflower oil has become relatively more attractive in pricing compared to some other vegetable oils.
- Russia has ramped up production and processing of oilseed/vegetable-oil supplies with India as a key import destination.
Supply chain & geopolitical factors
- Disruption in Ukraine’s export capacity (because of war, logistical issues) made Indian importers look for alternative sources. The Times of India
- India’s dependence on edible-oil imports is high; moves to secure reliable sources are important for food security.
Strategic trade relationships
- Russia and India are strengthening agricultural trade ties, and vegetable-oil exports form an increasing part of those ties.
Implications for India
1. Import dependency & food security
India already relies heavily on imports for edible oils. A shift to Russia as a major supplier underscores that dependency and accentuates risks (supply disruption, price spikes).
2. Pricing & consumer impact
If Russia’s oil supplies are cheaper or more reliable, this could help moderate domestic edible-oil prices. On the other hand, if global disruptions occur, price rises could follow.
3. Domestics oilseed production push
The government’s push to increase domestic oilseed production becomes more urgent in light of increasing imports from one major supplier. This shift may influence policy on production incentives, import tariffs, etc.
4. Trade diversification & geostrategy
Relying more on one country for essential imports can be a strategic risk. India may seek to diversify further or negotiate favorable terms with Russia.
5. Competitive pressures on other suppliers
Suppliers like Ukraine, Argentina, Romania may lose market share in India’s sunflower-oil import market. This could alter global export flows.
Risks & Challenges
- Over-reliance on one source: Although Russia is currently in the lead, any disruptions (sanctions, export duties, production issues) could impact supply.
- Price volatility: Edible oil prices are sensitive to global crop cycles, freight/port costs and geopolitical shocks.
- Domestic supply constraints: Importing more does not substitute for strengthening local production, which remains a longer-term but essential task.
- Quality/regulation issues: Imported edible oils must meet Indian standards; importers must manage logistics, quality control, duties.
Outlook & What to Watch
- Monitor import volumes from Russia across the next few quarters: whether Russia maintains or increases its share.
- Track domestic retail edible-oil prices in India: will they reflect improved supply or stay elevated?
- Watch Indian policy changes: any new duties, incentives for domestic oilseed production, or diversification of import sources.
- Check global supply-side developments: crop yields in Russia/Ukraine/Argentina; export-duty changes; global vegetable-oil demand shifts.
Conclusion
The shift where Russia becomes India’s biggest supplier of sunflower oil highlights evolving global trade patterns, the importance of supply-chain reliability in edible oils, and how India is adapting to those changes. While this gives Indian importers a new dependable source, it also underlines the urgency of reducing import dependence and boosting domestic oilseed production.
