Why Are Sunflower Oil Prices Rising in Georgia and Globally?

Throughout 2025, sunflower oil prices have continued an upward trajectory both on global markets and in Georgia. The issue is multifaceted, with a complex interplay of international and domestic economic factors shaping the price movements.

On global markets, sunflower oil prices have been climbing since the beginning of 2025. One of the primary drivers has been reduced production in Ukraine and Russia (FAO). Climate challenges, poor harvest yields, and in some cases geopolitical restrictions have significantly decreased sunflower output. For instance, by early 2025, harvest volumes in Bulgaria and Ukraine had dropped substantially, triggering price increases exceeding 50% on international markets (Bloomberg; Oilworld). In addition, export duties imposed by Russia have placed further pressure on global supply chains and reduced available volumes (Reuters).

Beyond production issues, rising transportation costs also play a significant role. Security uncertainties in the Black Sea region, logistical disruptions, and increasing freight rates have driven up the cost of importing sunflower oil (Drewry). Meanwhile, growing demand from the biofuel industry has further tightened the global vegetable oil market, adding extra upward pressure on prices (International Energy Agency).

In Georgia, these international trends are directly reflected in domestic prices. In the first quarter of 2025, the average import price for sunflower oil reached $1.38 per liter, which is 39% higher compared to the previous year (BM.ge, based on Geostat data). Over the same period, import volumes decreased by 8.3%, totaling 7,900 tons, while the total import value rose by 21%, indicating a rise in unit costs (Geostat).

The price surge is already visible on the consumer market. According to Geostat, in April 2025, the retail price of sunflower oil in Georgia had increased by 30% year-over-year (Geostat, Consumer Price Index, April). In May 2025, the country’s annual inflation stood at 3.5%, but prices for certain food items, including sunflower oil, have been rising at a significantly faster pace.

The factors driving sunflower oil price increases are closely intertwined. Global supply shortages and higher transportation costs translate into rising import prices for Georgia, which ultimately flow through to retail prices. As Georgia is heavily dependent on imports for sunflower oil, fluctuations on global markets are almost directly transmitted to domestic prices.