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Russian invasion to Ukraine will have an impact on the price of global crude oil and what will pay gasoline cylinders, diesel and LPG so elections in Uttar Pradesh ending on March 7 will also affect the price of cooking oil – and what is likely to be more direct India consumes around 2.5 million tons (MT) sunflower oil every year. It makes it the most consumed vegetable oil, after the palm (8-8.5 mt), soyabean (4.5 mt) and mustard / radish (3 mt). But India almost does not produce 50,000 tons of sunflower oil and imports the rest – mostly from Ukraine and Russia.
According to the Ministry of Trade data, the import of sunflower oil in the country amounted to 2.5 MT in 2019-20 (April-March) and 2.2 MT at 2020-21, each worth $ 1.89 billion and $ 1.96 billion. Of the total imports, Ukraine contributed 1.93 MT (valued at $ 1.47 billion) in 2019-20 and 1.74 billion ($ 1.6 billion) in 2020-21, with Russian shares in accordance with 0.38 MT ($ 287 million) and 0.28 MT ($ 235.89 MT). Some amounts were also imported from Argentina: 0.17 MT in 2019-20 and 0.14 MT at 2020-21.
We import around 200,000 tons every month at 20,000 – 50,000 tons of ships from the Black Sea port in Ukraine and Russia. That the whole trade is now standing disturbed,” said B.V. Mehta, Executive Director of the Mumbai Customer Association based in India. The Ukrainian military has suspended operations at its port. Although the Russian port in the black sea is technically open for navigation, ship owners will avoid this given the high-risk premiums charged by insurance companies.
The price of global sunflower oil has increased even before the declaration of war by Russia. On February 23, the price of imported raw sunflower oil in Mumbai (fees plus insurance and shipping) was $ 1,630 per ton, with $ 1,500, $ 1,455 and $ 1,400 a week, month and last year. “We don’t know where prices will leave here,” added Mehta But it’s not just sunflowers. Other oils have also moved in sympathy. Palm oil rough and soy oil de-gummed imported into Mumbai quoted each with $ 1,810 and $ 1,777 per ton, against the weeks that suit them – and then, last month and last year’s $ 1,545 and $ 1,466 and $ 1,089 and $ 1,469 $ 1.126 per ton In addition, the price pressure up can come from other sources too. Because Brent crude prices have crossed $ 100 / barrel, it became much more interesting to divert palm oil and soybeans to bio-diesel production. The global production of bio-fuel from vegetable oils using a height of 48 MT in 2021, accounting for 18 percent of total consumption.
The positive side for all this, however, is that Indian farmers will realize good prices for their mustard plants because of harvests from mid-March. Mustard is currently trading at Mandis Rajasthan at Rs 6,700-6,800 per quintal, far above the price of the minimum support of the Government Rs 5,050. High prices must also provide incentives to farmers to increase areas under peanuts, soybeans and peers in the upcoming Kharif season.
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