Sunflower oil imports halve in February as West Asia conflict lifts prices

India’s crude sunflower oil imports fell sharply in February as rising global prices and shipping disruptions linked to the West Asia conflict hit supplies, according to industry data released on Thursday. 

Imports dropped 51% year-on-year to 1.45 lakh tonnes in February, data from the Solvent Extractors’ Association of India (SEA) showed. The fall came as tensions in West Asia and disruptions to shipping routes around the Black Sea pushed prices higher and slowed shipments. 

The average import price of crude sunflower oil rose 17% to $1,420 per tonne in February from $1,216 a year earlier. The cost burden for importers and refiners increased further as the rupee depreciated 4.2% against the US dollar over the past year. 

Russia and Ukraine together account for 70–90% of India’s sunflower oil imports. War-related disruptions to Black Sea export routes, along with tensions affecting shipping through the Red Sea and the Suez Canal, have tightened global supplies and raised freight costs. 

"...the current conflict — especially potential disruptions in the Red Sea and Suez Canal — threatens to delay shipments, increasing logistic costs and affecting availability," SEA said in a statement. 

Imports during the first four months of the 2025-26 oil year, which began in November 2025, also declined. Sunflower oil imports fell to 9.04 lakh tonnes during the period, compared with 11.2 lakh tonnes in the same period a year earlier. 

"The risks of disrupted sunflower oil shipments from Russia and Eastern Europe, and higher freight costs for palm oil, have caused price hikes, forcing traders and consumers to closely monitor the situation to navigate supply chain risks," SEA said. 

To reduce dependence on supplies from the Black Sea region, India has been exploring alternative sourcing options. The country has been in discussions with Mercosur nations — Argentina, Brazil, Paraguay, and Uruguay — for long-term contracts for soybean and sunflower oil. 

The conflict could also affect India’s oilmeal exports if logistics disruptions worsen. Southeast Asia and the Middle East together account for nearly 20% of India’s oilmeal exports. 

SEA also noted that rising crude oil prices have increased interest among biofuel producers in palm oil-based biodiesel. This could boost near-term demand for palm oil in Southeast Asia. 

Despite the fall in sunflower oil imports, India’s overall vegetable oil imports rose in February. Total imports of edible and non-edible oils increased 6% year-on-year to 53.24 lakh tonnes. Palm oil imports stood at 8.47 lakh tonnes, while soybean oil imports were 2.99 lakh tonnes. Vegetable oil stocks in the country stood at 18.72 lakh tonnes as of March 1, up by 85,000 tonnes from the previous month. 

(With PTI inputs)