Russia's war on Ukraine impacts import of cooking oils to state, prices goes up

Russia's war on Ukraine has had a huge impact on cooking oils as imports of palm oil and sunflower oil from Russia and Ukraine to India have almost stopped. India imports palm crude, palm oil and sunflower oil from Russia, Ukraine, Malaysia and Indonesia. Palm crude and palm oil are not exported to other countries in the name of Indonesia Domestic Sales.

However, India imports 30% of our sunflower oil from Russia and 70% from Ukraine and later imported through the ports of Kakinada and Krishnapatnam for the needs of the people of the Telugu states. Meanwhile, the oil imports from those countries have declined since the first week of February due to market conditions. As the war between Russia and Ukraine came to the fore, this effect fell on oil prices.

The price of cooking oils has gone up by Rs. 30 to Rs 40 per liter on weekdays due to lower imports. The price of palm oil has gone up from Rs 115 to Rs 145 per liter. When the market is full of sunflower oil stocks, the price of a liter has gone up from Rs 130 to Rs 170. The price of locally available rice bran oil has also gone up as prices have skyrocketed from Rs 145 to Rs 170 per litre and the price of groundnut oil has gone up from Rs 139 to Rs 165 per liter. Consumers are gagging at increased prices.

On the other hand, six companies, which have been importing palm crude, palm oil and sunflower oils from Russia, Ukraine, Malaysia and Indonesia, have retained them. The war has halted imports of sunflower oil from Russia and Ukraine and Indonesia has suspended exports in the name of domestic sales for domestic needs. The situation is similar in Malaysia. The oil, which was imported to Kakinada and Krishnapatnam ports, remained there till the first week of February. The importers are supplying goods to wholesalers keeping in view of future conditions. With this, the shortage of oils is haunting the market. Stocks of oils are almost depleted at the state's monopolies and retailers. The chances of shipment of goods from importers are reduced.