Invasion of Russia on Ukraine will have economic effects on Eastern part of the world and you need to start looking at what is going to cost you more. Not only crude and natural gas prices will go up but cooking oil prices will start worrying you more with immediate effect.
The annual consumption of Sunflower oil in India is 2.5 million tones. It is fourth most consumed oil in India after Palm oil (8 mt), followed by Soyabean (4.5 mt) and Rapeseed oil (3 mt). Most of the sunflower oil comes from import as India doesn’t even produces 50,000 tonnes of sunflower. The major import of sunflower oil is done from Ukraine and Russia.
Data released by Ministry of Commerce reveals that our total sunflower oil imports in 2019-20 was 2.5 mt, 2.2 mt in 2020-21. The value of the 2019-20 and 2020-21 imports account for $1.89 billion and $1.96 billion dollars respectively. Out of this 1.93 mt (2019-20) and 1.74 mt (2020-21) was imported from Ukraine and rest of the part was imported from Russia.
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BV Mehta, executive director of Solvent Extractors Association of India said, “We import about 200,000 tonnes every month in 20,000-50,000 tonne vessels from Black Sea ports in Ukraine and Russia. That entire trade now stands disrupted.” The ports in Ukraine have closed operations while as Russian ports in Black Sea are open for operations but no private ship company will risk going in the area.
Before Russia declared military operations in Ukraine; sunflower prices across the world started soaring heights. In Mumbai, price of crude sunflower was $1630 per tonne on February 23 which was within $1400-1500 per tone earlier. It is hard to predict how far this will go but it will surely affect Indian consumers. Not only Sunflower but cooking oil prices of other oils have also observed increase in price due to market trends. The prices of de-gummed soyabean oil and crude palm oil were at $1777 and $1810 per tonnes respectively.
