NEW DELHI: The Ukraine conflict is expected to hit supply of sunflower oil in the domestic market, pushing up prices, but may create an opportunity for Indian wheat exporters to tap the global markets at a time when prices are elevated.
The government, however, believes that the impact of higher sunflower oil price may result in substitution to other edible oils limiting the impact on household budgets. And, with a bumper mustard harvest, even companies expect the impact on prices to be muted.
India consumes around 3. 5 million tonnes of sunflower oil, which is 20% of the total portfolio of its edible oils. Around 90% of sunflower oil in the world is exported by Russia (20%) & Ukraine (70%), rest comes from Argentina.
“Typically, a manufacturer would have surplus stocks of around 45-55 days (spread over ports, factories and with trade). Loading from Russia and Ukraine slowed down over the last four days. Today, it has stopped. Adani Wilmar had stocked up earlier due to early signals. If situation continues for a long time, companies will look towards Argentina and Russia (unless there is an embargo),” said Adani Wilmar MD & CEO Angshu Mallick.
Official statistics estimated that during April-December, nearly 65% of India’s imports of around $2 billion from Ukraine were accounted for by crude sunflower oil seeds.
Ukraine’s share of animal and vegetable fats and oils in India’s total import of the product segment is pegged at around 10%, prompting government sources to argue that the current situation will not adversely impact India’s trade position.
The government, however, believes that the impact of higher sunflower oil price may result in substitution to other edible oils limiting the impact on household budgets. And, with a bumper mustard harvest, even companies expect the impact on prices to be muted.
India consumes around 3. 5 million tonnes of sunflower oil, which is 20% of the total portfolio of its edible oils. Around 90% of sunflower oil in the world is exported by Russia (20%) & Ukraine (70%), rest comes from Argentina.
“Typically, a manufacturer would have surplus stocks of around 45-55 days (spread over ports, factories and with trade). Loading from Russia and Ukraine slowed down over the last four days. Today, it has stopped. Adani Wilmar had stocked up earlier due to early signals. If situation continues for a long time, companies will look towards Argentina and Russia (unless there is an embargo),” said Adani Wilmar MD & CEO Angshu Mallick.
Official statistics estimated that during April-December, nearly 65% of India’s imports of around $2 billion from Ukraine were accounted for by crude sunflower oil seeds.
Ukraine’s share of animal and vegetable fats and oils in India’s total import of the product segment is pegged at around 10%, prompting government sources to argue that the current situation will not adversely impact India’s trade position.
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