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How to Export Sunflower Oil from Ukraine, India, or Argentina to the MENA Region (2025 Guide)

by Generic H2 (Embedded) on August 15, 2025

How to Export Sunflower Oil from Ukraine, India, or Argentina to the MENA Region (2025 Guide)
1. Market Landscape in 2025 🌍

Ukraine remains one of the world’s key sunflower oil suppliers, shipping 2.407 million tonnes in January–June 2025 (worth about $2.77 billion). The largest buyers were Spain (12.9%), Italy (12.2%), and India (11.8%).
However, political instability and congestion at Black Sea ports reduced exports by roughly 24% year-on-year by March 2025. Shipment delays and higher logistics costs became common challenges.

Argentina significantly expanded sunflower oil exports in June 2025 — 127 kt compared to 67 kt a year earlier — bringing its January–June total to 660 kt. Key destinations included India (60 kt) and Iraq (33 kt), along with the UAE, Chile, USA, and Colombia.

India increased sunflower oil imports by 18% in June compared to May, reaching 216 kt. Demand was driven by festival-season consumption and reduced domestic production.

The International Grains Council (IGC) forecasts a 9% global rise in sunflower production for 2025/26, but uncertainty over Ukraine’s yields due to drought means prices remain firm at $1,100–1,120/t FOB.

2. Why MENA Buyers Are Changing Their Sourcing in 2025

🚢 Logistics & Diversification

Disruptions in Black Sea shipping routes are pushing importers to diversify origins, especially toward Argentina.

Rising freight and insurance rates are increasing landed prices from Eastern Europe.

💰 Price Competitiveness

Ukrainian sunflower oil at $1,100–1,120/t FOB is almost on par with Argentine soybean oil ($1,110–1,120/t), making South American offers more appealing.

✅ Reliability & Volume

Buyers in India and MENA prefer suppliers who can guarantee regular volumes, contract security, and full compliance with phytosanitary standards.

3. Step-by-Step Export Guide to MENA in 2025

1. Sourcing & Production Planning

Ukraine: With ~2.4 Mt exported in H1 2025, exporters should plan for delays, secure pre-bookings, and obtain quality certification. Large players such as Kernel and Creative Group have established global reputations.

Argentina: Rapidly growing exports backed by strong processing capacity; ideal for large buyers in Iraq, UAE, and other MENA destinations.

India: Not a major producer for export, but an important re-export hub — useful for traders seeking contractual flexibility.

2. Logistics & Trade Routes

Ukraine relies on Black Sea ports, but delays are frequent — alternative EU land corridors or Baltic routes should be considered.

Argentina uses Atlantic shipping via the Indian Ocean and Red Sea, with direct Gulf access.

Russia has opened new export channels via the St. Petersburg terminal, bypassing Black Sea limitations.

3. Pricing & Contract Terms

Negotiate competitive FOB/CIF contracts and fix prices at origin to minimize freight volatility.

Monitor seasonal price variations — in June 2025, China paid ~$1,073/t CIF, while the U.S. paid ~$1,222/t FOB.

4. Compliance & Certifications

Secure all sanitary and phytosanitary (SPS) clearances, quality certificates, and traceability documentation.

Many MENA markets require Halal certification and compliance with GCC import regulations.

5. Packaging & Shipping

Offer bulk tankers, ISO tank containers, or drums, depending on buyer preference.

Ship FOB to Mediterranean ports (Spain, Italy) or directly to Gulf destinations like UAE and Jordan.

6. Risk Mitigation

Use Incoterms protections such as letters of credit, performance bonds, and marine insurance.

Maintain backup supply options (e.g., Argentina or Indian re-export) to ensure continuity if Ukrainian shipments drop.

4. Summary — Exporter Options & MENA Buyer Preferences

Ukraine — Exported 2.4 Mt in H1 2025; volumes down but quality remains premium. Preferred for its established reputation, though needs logistical backup.

Argentina — Rapid export growth (127 kt in June alone) and over 1 Mt in H1 2025. Competitive pricing and large volumes make it a top choice for diversification.

Russia (via Baltic routes) — New export capacity from St. Petersburg offers a reliable alternative outside the Black Sea.

India (Re-export hub) — Major edible oil importer and redistribution center, offering contract flexibility and access to Gulf markets.

About This Blog Post

This blog post is published by Generic H2 (Embedded), an active participant on our trading platform. The content reflects company insights, product knowledge, or market trends relevant to their industry. Articles like this one help boost SEO visibility and offer valuable information for future visitors and potential partners.