Cooking oil price to increase: The effect of the ongoing war between Ukraine and Russia will be seen in India as well. Here the price of edible oil can increase. The main reason for this is that both Russia and Ukraine are big producers of sunflower oil.
Due to Russia and Ukraine War, there will be a shortage of supply in both, which will make the prices even higher. India will suffer more than other countries, because 90 percent of the country’s sunflower oil imports come from Russia and Ukraine.
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Sunflower’s share in edible oil imports is 14 percent
According to commerce ministry data, India consumes about 2.5 million tonnes (mt) of sunflower oil annually, but it produces only 50,000 tonnes of sunflower oil and imports the rest. Sunflower oil accounts for 14 percent of all edible oil imports. It is the fourth most consumed edible oil after palm (8-8.5 million tonnes), soybean (4.5 million tonnes) and mustard/rapeseed (3 million tonnes). The price of sunflower oil increased from Rs 98 per liter in February 2019 to Rs 161 per liter in February 2022.
2.2 million tonnes of sunflower oil imported
India’s sunflower oil imports are 2.5 million tonnes in 2019-20 (April-March) and 2.2 million tonnes in 2020-21, valued at $1.89 billion and $1.96 billion. From Ukraine it imports 1.93 million tonnes ($1.47 billion) in 2019-20 and 1.74 million tonnes ($1.6 billion) in 2020-21, with Russia importing it around 0.38 million tonnes ($287 million) and 0.28 million tonnes. (235.89 million tonnes) imports.
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The biggest reason for dependence on imports
Roop Bhoot, CEO, Investment Services, Anand Rathi Shares and Stock Brokers said, “High oil prices are always a risk factor for India, with imports being a major factor. However, the current move in oil prices is mainly due to the Ukraine crisis and should calm down in some time.
Edible oil prices rise
Globally and in India, edible oil prices have been rising steadily since the start of the pandemic. This increase is so fast that the Government of India had to take several measures to check the rise in prices.
Tags: business news, oil markets
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