By Olga Popova and Gleb Bryanski
MOSCOW (Reuters) -Russia, the world’s top sunflower oil producer, aims to increase exports to India, seeking to replace Ukrainian supplies that are being redirected to Europe, the state agricultural export agency said on Friday.
India is a major buyer of Russian energy, and the two countries are maintaining close ties despite pressure from the U.S. on India to curb purchases. The U.S. has imposed 50% tariffs on Indian goods, prompting India to seek alternative trading partners.
“Russia may strengthen its position in sunflower oil exports to the Indian market in the 2025/26 season. This could occur as Ukrainian suppliers shift their focus from Asia to Europe,” agricultural export agency Agroexport said in a statement.
INDIA OPEN TO BUYING MORE RUSSIAN SUNFLOWER OIL
A Russian delegation, headed by Deputy Prime Minister Dmitry Patrushev, is taking part in the World Food India exhibition this week. Patrushev met with Prime Minister Narendra Modi on September 25.
Russia is set to export a record 5 million metric tons of sunflower oil in the 2025/26 season, according to Dmitry Rylko, the head of consultancy IKAR. India is the biggest buyer of Russian sunflower oil, accounting for a third of total exports.
Russia is set to harvest a record sunflower crop this year, as more farmers switch from wheat, the country’s largest agricultural export, because it is seen as less profitable.
India imports soybean oil and sunflower oil from Argentina, Brazil, Russia, and Ukraine.
“India is the world’s biggest importer of edible oils and is open to the idea of increasing sunflower oil imports from Russia,” an Indian government source told Reuters, adding that purchases were up to private traders.
Mikhail Maltsev, head of Russia’s Oils and Fats Union, said vegetable oil production, including soybean and rapeseed oil, would rise by 7.5% this year to more than 10.5 million tons. He also forecast record vegetable oil exports this year.
Ilya Ilyushin, head of Agroexport, said Russia also wants to increase exports of grains and legumes to India. Russia exported 0.8 million tons of peas to India last year, making it the second-largest supplier.
The Russian government said in a statement that Patrushev and Modi discussed setting up a BRICS grain exchange, a project floated during Russia’s presidency of the group last year.
Russia says such an exchange would help BRICS countries reduce dependence on international grain traders and set fair prices for agricultural commodities. There has been no progress on the project so far this year.
(Additional reporting by Shivam Patel and Mayank Bhardwaj in New Delhi. Writing by Gleb Bryanski. Editing by Mark Potter)
