The Ukraine-Russia War’s Effect on Sunflower Oil Consumption in India

The Ukraine-Russia war, which began in 2014, has had far-reaching consequences beyond the borders of those nations. One unexpected area affected by this conflict is the global sunflower oil market, with India being one of the major consumers of this essential cooking oil. This article explores how the Ukraine-Russia war has influenced sunflower oil consumption in India.

India is the largest importer of edible oils in the world, and sunflower oil constitutes a significant portion of its imports. Sunflower oil is favoured for its light flavour, high smoking point, and nutritional benefits. Historically, Ukraine and Russia have been the leading global producers of sunflower oil, accounting for a substantial share of India’s imports.

The Ukraine-Russia war disrupted sunflower oil production and export capabilities in both countries. Conflict-related factors such as territorial disputes, economic sanctions, and logistical challenges severely affected the agricultural sector, including sunflower cultivation and processing. As a result, the war led to a decline in the overall global supply of sunflower oil.

The reduced supply of sunflower oil due to the Ukraine-Russia war caused a surge in global prices. India, heavily reliant on imports, felt the impact of this price increase. The higher prices made sunflower oil less affordable for consumers, leading to changes in consumption patterns.

To cope with the rising prices of sunflower oil, Indian consumers started exploring alternative cooking oils. Consumers shifted towards domestically produced oils such as mustard oil, soybean oil, and palm oil, which are relatively cheaper compared to imported sunflower oil. This shift in consumer preferences resulted in a decline in sunflower oil consumption in India.

In response to the disruption in sunflower oil supply from Ukraine and Russia, India diversified its import sources. The country increased imports from other sunflower oil-producing nations like Argentina, Turkey, and Hungary. This diversification strategy helped mitigate the impact of reduced supply from the war-affected regions.

Re-reported from the story originally published in Indian Express