Cooking oil prices to rise amid Russia-Ukraine war? Here’s what we know so far
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In the midst of a raging war between Russia and Ukraine, shipping more than 3.50,000 tons of cooking oil to India is at risk as logistics and loading remains trapped in various ports. India, the largest buyer of sunflower oil in the world with a 60 percent high import of its needs, is also the top buyer of palm oil and soybeans Traders in this country have contracted imports of 5.50,000 tons of sunflower oil from Ukraine and Russia for delivery in February and March, said the Reuters report, citing Sandeep Bajoria, President of the International Sunflower Oil Association.
While 1,80,000 tons of cooking oil managed to go from the port, Bajoria said the rest of the rest is uncertain.
Cooking oil prices may surge
Ukraine and Russia accounted for almost 80 percent of world sunflower oil delivery If the supply is disrupted, it increases the risk of a surge in cooking oil prices in this country. Food prices of consumers have risen in January with the fastest speed in 14 months, crippling the household budget for many people despite relief in taxes and limiting inventory. Prices remain increased in line with the surge in global oil futures.
India bought 1.89 million tons of raw cooking oil until October last year, with Ukraine supplying 74 percent of them, while Argentina and Russia each accounted for around 12 percent of imports Global prices of vegetable oils, used for everything starting from preparing cookies to fry potato chips to make shampoo, have more than doubled in two years more than supply constraints, with palm oil and soybean oil soar to the highest of all time this week because of the offer .
With the more complicated situation between the two countries with every day, Western countries have warned that Kyiv can fall if the battle continues Some cooking oil companies have closed operations in Ukraine. BUNGE LTD. Suspending a business in two oil seed processing facilities, Wilmar International Joint venture Ltd closed the vegetable oil unit in the country, while Archer-Daniels-Midland Co close the oil crusher plant in Chornomansk.
What will India do about it?
“The world ends, there will be a shortage of sunflower oil and the price will rise,” said Bajoria told Reuters. He added that Indian importers are expected to wait about a week before they turn to the purchase of palm oil and soybeans to increase domestic inventory The ongoing war between Moscow and Kyiv was one of the worst security crises that Europe saw since World War II. According to reports, the delegation of Ukraine has now agreed to meet with Russian delegates for talks along the Ukrainian-Belarusian border.
In the midst of a raging war between Russia and Ukraine, shipping more than 3.50,000 tons of cooking oil to India is at risk as logistics and loading remains trapped in various ports. India, the largest buyer of sunflower oil in the world with a 60 percent high import of its needs, is also the…