India Stops Buying Sunflower Oil as Ukraine Conflict Maroons Shipments -Dealers

About 380,000 tonnes of sunflower oil shipments from the Black sea area to India are caught at ports and with producers, and new purchases have stalled after ports suspended operations following Russia’s invasion of Ukraine4 sellers informed Reuters.

There isn’t any readability when loading of the cargoes – value $570 million at present costs – from Ukraine and Russia will resume, pushing Indian patrons to interchange sunoil with soyoil and palm oil for March and April shipments, sellers stated.

The Black Sea area accounts for 60% of world sunoil output and 76% of exports, and India is the highest world edible oil importer.

New Delhi’s pivot to alternate oils may additional help Malaysian palm oil and US soybean futures, that are already buying and selling close to report highs.

India has contracts for about 510,000 tonnes of sunoil from Black Sea area for shipments in February and March, however solely 130,000 tonnes have been loaded thus far in February, sellers stated.

“We do not know what’s going to occur to the remaining amount. When it will likely be shipped,” Govindbhai Patel, managing director of trading firm GG Patel & Nikhil Research Company, told Reuters.

Although India buys palm oil from Indonesia and Malaysia, it mainly imports soyoil from Argentina and Brazil, and sunflower oil from Russia and Ukraine,

The shipment delays could create a sunflower oil scarcity in India if loading is not resumed in the next few weeks, said Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage and consultancy firm.

India imported 125,024 tonnes of sunoil in November 2021, 258,449 tonnes in December 2021, and 307,684 tonnes in January 2022, according to data from the Solvent Extractor’s Association (SEA).

The country, which gets more than two-thirds of its edible oil supplies through imports, buys about 1.25 million tonnes of cooking oil every month.

Palm oil is usually the dominant oil used in Indiabut importers have had to buy more soyoil and sunflower oil this year due to reduced supplies of palm oil from top exporter Indonesia, which pushed palm prices to record highs.

Soyoil supplies are also limited as drought has hit soybean crops in South America. This could force Indian buyers to make more purchases of US soybean, a New Delhi-based dealer said.

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