Mumbai, March 29
India has contracted 45,000 tonnes of Russian sunflower oil at a record high price for shipments in April as edible oil prices in the local market surged after supplies from rival Ukraine stopped, five industry officials said.
Sunflower oil from Russia could help the world’s biggest edible oil importer in easing the shortfall at a time when availability of vegetable oils is stretched because of Indonesia’s decision to restrict palm oil supplies and lower soybean crop in South America.
“As vessel loading is not possible in Ukraine, buyers are trying to secure supplies from Russia,” said Pradeep Chowdhry, managing director of Gemini Edibles & Fats India Pvt. Ltd, which contracted 12,000 tonnes of Russian sunflower oil for April shipments.
Refiners bought crude sunflower oil at a record price of $2,150 a tonne, including cost, insurance and freight (CIF), in India for April shipments, compared with $1,630 before Russia invaded Ukraine, dealers said.
Sunflower oil was cheaper than rival palm oil and soyoil before the conflict, but as supplies from top exporter Ukraine stopped, buyers have to pay hefty premium, Chowdhry said. The Black Sea accounts for 60% of world sunflower oil output and 76% of exports.
Indian buyers were not making purchases of Russian sunflower oil for nearly a month, but now they are placing orders as banks are opening letters of credit (LC) for the imports, said a New Delhi-based dealer with a global trading firm. — Reuters
Supplies from Ukraine halted
- Refiners have bought crude sunflower oil at a record price of $2,150 a tonne compared with $1,630 before Russia invaded Ukraine
- Shipments of over 3,00,000 tonnes of sunflower oil from Ukraine to India are stuck as loading at Ukrainian ports is suspended
For all the latest business News Click Here
