• A 20,000-ton Russian sunflower oil shipment to India was cancelled and 60,000 tons delayed after Black Sea port infrastructure was damaged, Reuters (TRI) reports.
  • India's October sunflower oil imports could fall to 160,000 tons, well below the roughly 250,000 tons needed monthly, pushing buyers toward palm oil.
  • India bought 150,000 tons of crude palm oil in just three days, potentially supporting Malaysian palm oil prices.

Black Sea Attacks Disrupt Russian Sunflower Oil Exports to India

A 20,000-ton shipment of Russian sunflower oil destined for India was cancelled after Black Sea port infrastructure was damaged, while another 60,000 tons of shipments have been delayed, according to a Reuters report. The disruption is accelerating India's switch from sunflower oil to palm and soybean oil, with buyers increasingly turning to alternatives to fill the supply gap.

India, the world's largest importer of edible oils, meets nearly two-thirds of its vegetable oil demand through imports. The cancelled and delayed cargoes threaten to reduce October sunflower oil imports to just 160,000 tons, compared with the roughly 250,000 tons needed monthly. That represents a shortfall of about 90,000 tons, or 36%, from typical requirements.

In response, Indian buyers have snapped up 150,000 tons of crude palm oil in just three days, a move that could support Malaysian palm oil prices. The shift to palm and soybean oil is already evident in trade data: September sunflower oil imports fell 36% month-on-month to 103,000 tons, the lowest since April 2022, according to estimates from five dealers reported on October 5. Meanwhile, palm oil imports rose 3.5% to 810,000 tons, a seven-month high, while soybean oil imports slipped 4.6% to 600,000 tons from August's record. Total edible oil imports dipped 3.75% to about 1.5 million tons.

The disruption stems from escalating attacks on Black Sea port and maritime infrastructure amid the Russia-Ukraine war. Both countries have increasingly targeted such facilities, disrupting grain and vegetable oil exports. The damage behind the specific cancelled Russian cargo has not been attributed to any party. "Damaged Black Sea port infrastructure is restricting shipments despite strong demand," said Rajesh Patel, managing partner at GGN Research, who expects sunflower imports to remain low in October.

India's government moved to ease domestic prices by cutting import duties on edible oils on September 23, effective September 24. The basic duty on sunflower oil was slashed to 0% from 10%, bringing the total import duty to 5.5%. Palm and soybean oil now carry a 5% basic duty and an 11% total duty. The policy gives sunflower oil a tax advantage, but lower duties cannot resolve damaged ports and delayed shipments.

The supply crunch is not new. In August, Reuters reported that roughly 150,000 tons of Black Sea sunflower cargo scheduled for August-September were delayed, prompting Indian buyers to switch to alternatives. At that time, sunflower oil traded at a premium of nearly $200 per ton over palm and soybean oil, whose landed costs were nearly equal for October-December shipments. Indian importers have also sought Argentine sunflower oil and other vegetable oils as delays stretched to as much as 60 days.

Looking ahead, industry forecasts suggest a potential rebound. Angshu Mallick, president of the Solvent Extractors' Association of India, told Reuters that sunflower oil imports could rise 30% to 3.5 million tons in 2026/27 following the duty cut, potentially gaining share at soybean oil's expense. However, near-term supplies remain constrained by logistics. "We have a constant balance with the banks, which really we consider our partners and not only our binary competitors," said Cecile Mayer-Levi, head of private debt activity at Tikehau Capital SCA (TKO.PA), referring to the broader financing environment, though her comment was not directly related to the sunflower oil trade.

The decisive variables for India's edible oil market will be port functionality, cargo arrival dates, relative landed prices, and Southeast Asian palm supply. For now, the substitution trend appears firmly in place, with palm oil standing as the primary beneficiary.

Correction: An earlier version of this article misstated the percentage decline in September sunflower oil imports. It fell 36% month-on-month, not 30%.