From an average of Rs 98 rupees per litre across brands in mid-February 2019, the price of sunflower oil has
surged to between Rs 180 and 250 per litre, depending on the brand in question. Edible oil prices have surged 70 percent year-on-year and about 20-30 percent month-on-month since the start of the
Russia-Ukraine war.
So overcome the shortage and resultant price rise, a report said India has contracted 45,000 tonnes of Russian sunflower oil at a record high price. The report from Reuters said shipments will happen in April.
"As vessel loading is not possible in Ukraine, buyers are trying to secure supplies from Russia," the report said quoting Pradeep Chowdhry, managing director of Gemini Edibles & Fats India. His firm has contracted 12,000 tonnes of Russian sunflower oil for April shipments.
Thre report also says refiners bought crude sunflower oil at a record price of $2,150 a tonne, including cost, insurance and freight, in India for April shipments, compared with $1,630 before Russia invaded Ukraine.
India imports 60 percent of its edible oil requirement, which is about 13 million tonne. Russia and Ukraine together account for 60 percent of sunflower oil production and exports and, hence, supply shortage has spurred the prices further.
Sunflower oil from Russia could help boost the shortfall. The availability of vegetable oils is stretched because of Indonesia's decision to restrict palm oil supplies and lower soybean crop in South America.
Atul Chaturvedi, president at Solvent Extractors Association, had earlier told CNBC-TV that India consumes roughly about 200,000 tonne of
sunflower oil every month. "This standoff between Russia and Ukraine has resulted in the supplies getting disrupted. But as far as February and March are concerned, the imports have been reasonable, but come April, we will start feeling the pinch. The core demand which cannot be replaced with any other oil, as far as sunflower is concerned, is about 100,000 tonne a month," Chaturvedi said.
He had also indicated that "some sunflower oil is actually moving out of two Russian ports". "Though the quantum is limited, that will take care of the core demand," he had said.
Sanjeev Kumar Asthana, CEO, Ruchi Soya Industries, had pointed to a possibility of 50 percent of the planting in Ukraine may not happen because of the war. That would keep pain points in sunflower oil industry for the foreseeable future.
Inputs from Reuters
