Russian sunflower oil cargo bound for India cancelled as war hits Black Sea ports

A 20,000-ton shipment of Russian sunflower oil bound for India was cancelled after the supplier was unable to deliver because of damage to port infrastructure in the Black Sea region, Sandeep Bajoria, president of the International Sunflower Oil Association, told Reuters.

Such cancellations, known as washouts, are rare in the sunflower oil trade and have not been reported in many years, Bajoria said. The Russia-Ukraine conflict has also delayed about 60,000 tons of sunflower oil bound for India, prompting Indian buyers to step up palm oil purchases ahead of the festival season, according to trade sources.

Russian sellers are now seeking to ship from Baltic Sea ports such as St Petersburg and Ust-Luga. “Shipping from Baltic ports means higher freight costs and an additional 10 days of voyage time,” Bajoria, who is also chief executive of Mumbai-based brokerage Sunvin Group, told Reuters. “But there is no other option, as Black Sea infrastructure is crumbling because of the war.”

India meets almost all of its sunflower oil demand through imports, needing about 250,000 tons a month, and October shipments could fall to 160,000 tons because of loading delays in Russia and Ukraine, a New Delhi-based dealer said. Stocks are already depleted after below-average imports in recent months, Reuters reported, while edible-oil demand is expected to rise during the upcoming festival season.