As Ukraine halt supplies for sunflower oil, India buys the product from Russia at record price

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.