The single-largest import landing place of crude sunflower oil for India is the former Soviet republic.
Traders and solvent manufacturers have warned that the Russian conquering of Ukraine would directly lead to the rise in the prices of edible oils, especially that of sunflower oil. They have warned of prices moving upward due to the supply chain’s disruption.
The single-largest import landing place of crude sunflower oil for India is the former Soviet republic.
For the November-October (oil supply year) 2020-21, India had imported 18.93 lakh tonnes of crude sunflower oil. Of this, 13.97 lakh tonnes were from Ukraine alone. Argentina (2.24 lakh tonnes) and Russia (2.22 lakh tonnes) are the other significant suppliers, but the figures show that maybe Ukraine is the only major supplier to India.
Atul Chaturvedi, president of the Solvent and Extractors Association (SEA)—the central body of edible oil manufacturers—said prices are expected to go northward. “Yes, definitely markets have the serious potential of moving northwards. Sunflower oil comes from Ukraine and Russia, and its supply chain will be disturbed. We import almost 2.0 lakh mts of sunflower oil per month,” said Chaturvedi.
How the rise in crude prices will affect the Indian economy
This war has reached a time when inflation in edible oil is a significant concern in the domestic markets. The price of refined sunflower oil in the retail market has shot up to Rs 161.94/liter compared to Rs 145.03/liter, according to the Price Monitoring Cell of the Union Ministry of Consumer Affairs. Supply chain disruption can easily see prices increasing significantly.
Chaturvedi said while Argentina can be an alternate supplier, the quality necessary to fulfill domestic demand could not be met from the South American country. Retail food inflation has become a significant problem in the country and has seen the ministry of consumer affairs taking multiple steps to control this.
Another fall out of this war is a sudden escalation of the average traded price of soybean across the wholesale markets in the country. At Latur’s wholesale market in Maharashtra, prices, which were at Rs 6,200 per quintal, have since the last two days have crossed Rs 7,000/quintal.
Edited By- Mahi Gupta
Published By- Pawan Rajput
