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India Seeks Sunflower Oil Alternatives Amid Black Sea Disruptions

Bloomberg Markets •
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India, the world's top sunflower oil buyer, is rushing to secure supplies of alternate vegetable oils as attacks in the Black Sea region disrupt imports and its own crops falter due to weak monsoon rains.

The disruption comes at a critical time for the South Asian nation, which relies heavily on Black Sea shipments to meet domestic demand. With Ukrainian and Russian exports constrained by ongoing conflict, Indian refiners are scrambling to source alternatives such as soybean oil from South America and palm oil from Southeast Asia.

Domestic production offers little relief. Erratic rainfall has damaged oilseed crops across key growing states, reducing the availability of locally produced alternatives. This dual supply shock — external logistics and internal weather — threatens to push edible oil prices higher ahead of the festival season.

Market analysts warn that prolonged Black Sea instability could force structural shifts in India's import basket, accelerating a diversification strategy that has been underway for years but now faces urgent timeline pressures.