War-related disruptions to Russian sunflower oil shipments are tightening supplies in India ahead of the festival season, prompting buyers to turn to palm oil. Traders estimate India purchased about 150,000 tons of CPO for November and December delivery this week.
PALMOILMAGAZINE, MUMBAI — Disruptions to sunflower oil exports from the Black Sea region are beginning to reshape India’s vegetable oil market, with delayed shipments and a canceled Russian cargo prompting buyers to increase purchases of palm oil ahead of the country’s peak festival demand.
About 20,000 tons of Russian sunflower oil scheduled for delivery to India were canceled after the supplier was unable to fulfill the shipment because of damage to port infrastructure in the Black Sea region.
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Sandeep Bajoria, president of the International Sunflower Oil Association, said such cancella-tions, known in the trade as washouts, are unusual in the sunflower oil market and have rarely been reported in recent years.
“Such cancellations are rare. But Black Sea infrastructure has now been damaged by the war,” Bajoria said, according to Reuters.
In addition to the canceled cargo, about 60,000 tons of sunflower oil bound for India have also been delayed because of the Russia-Ukraine conflict.
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The disruptions come at a sensitive time for the Indian vegetable oil market, as demand is ex-pected to strengthen during the festival season. The supply uncertainty has encouraged Indian buyers to increase purchases of palm oil as an alternative feedstock.
Russian Shipments Shift to Baltic Ports
Damage and disruptions at Black Sea ports have prompted Russian exporters to seek alternative shipping routes through Baltic Sea ports, including St. Petersburg and Ust-Luga.
The alternative routes, however, come with higher logistics costs and longer transit times.
“Shipments from Baltic ports mean higher freight costs and around 10 additional days of trans-it,” said Bajoria, who is also chief executive of Mumbai-based vegetable oil brokerage Sunvin Group.
The shift in shipping routes reflects the growing logistical challenges facing exporters as the conflict continues to disrupt infrastructure in the Black Sea region.
India’s Sunflower Oil Stocks Tighten
India is one of the world’s largest sunflower oil importers, relying heavily on overseas supplies to meet domestic demand. The country consumes around 250,000 tons of sunflower oil per month.
October arrivals, however, are expected to reach only about 160,000 tons, according to a New Delhi-based trader, as loading operations in Russia and Ukraine have been delayed.
Indian sunflower oil inventories have also declined after imports in recent months remained below average.
The tightening supply situation could become more significant as vegetable oil consumption rises during the festival season, increasing the incentive for importers to secure alternative supplies.
India Buys 150,000 Tons of Palm Oil
Trade sources said Indian buyers purchased about 150,000 tons of crude palm oil (CPO) within three days this week, with deliveries scheduled for November and December through ports on both India’s eastern and western coasts.
The purchases represent a notable addition to near-term palm oil demand from India. The country imported an average of about 632,000 tons of palm oil per month during the period through October 2025.
The shift toward palm oil could provide additional support to the global CPO market, particularly if sunflower oil supply disruptions persist.
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Stronger Indian demand could also help absorb palm oil supplies from Indonesia and Malaysia, the world’s two largest palm oil producers, potentially providing a counterweight to inventory pressure in the major producing countries.
For global vegetable oil markets, the developments in the Black Sea highlight how geopolitical disruptions can quickly alter trade flows and shift demand between competing oils. (P2)
