Traders in India are contracting deals for the import of 50,000 tonnes of soy oil and 50,000 tonnes of palm oil with reports of shipment delays of sunoil, following Russia’s invasion of Ukraine, Financial Express reports.
“Traders are not rushing in too much because they believe the situation with Russia and Ukraine may ease within the next 15 days. Stabilisation, local operations of seed plants and transportation should begin soon,” Sandeep Bajoria, president of the International Sunflower Oil Association said.
Bajoria added that India may purchase around 50,000 tonne of additional soy oil and 50,000 tonne of additional palm oil due to the sun oil deficit. “At the meeting with Union commerce minister Piyush Goyal, we have requested the government to allow free Rouble window, so that when the situation normalises, we can continue to import. Food and edible oils should not be included in sanctions,” he said.
At present, traders are contracting soy oil from USA and Brazil and palm oil from Malaysia. Prices have gone up since supplies are hampered. On the first day of the invasion, prices had gone up by $100 per tonne but yesterday when it became clear that NATO will not send troops, prices came down by $ 75 per tonne.
India gets more than two-thirds of its edible oil supplies through imports and buys about 1.25 million tonne of cooking oil every month. Palm oil is usually the dominant oil used in India, but importers have had to buy more soy oil and sunflower oil this year due to reduced supplies of palm oil from top exporter Indonesia, which pushed palm prices to record highs. About 85% of soybean oil in India is imported from Argentina and Brazil, while 90% of sun oil is imported from Ukraine and Russia. Almost all of India’s palm oil requirements are met from Indonesia and Malaysia.