India has agreed to supply 45,000 tonnes of Russian sunflower oil at a record price for April, as domestic edible oil prices rose after Ukraine cut off supplies, five industry executives told Reuters.
Sunflower oil from Russia could help the world’s largest importer of edible oil reduce shortages, at a time when availability of vegetable oils is limited due to Indonesia’s decision to cut supplies of palm oil and South America’s lowest soybean crop. .
“As ship loading is not possible in Ukraine, buyers are trying to secure supplies from Russia,” said Pradeep Chowdhry, CEO of Gemini Edibles & Fats India Pvt. Ltd, which agreed to buy 12,000 tonnes of Russian sunflower oil in April.
The price of sunflower oil hit a record $ 2,150 a tonne, including cost, insurance and freight rates (CIF) for India, up from $ 1,630 a tonne before the Russian invasion of Ukraine, traders told Reuters.
Sunflower oil was cheaper than FCPOc3 palm oil and BOc1 soybean oil before the war in Ukraine, but as supplies from Ukraine’s top exporter stopped, buyers would have to pay a heavy premium, Chowdhry said.
The Black Sea accounts for 60% of world sunflower oil production and 76% of exports.
Indian buyers have not been buying Russian sunflower oil for nearly a month, but are now placing orders as banks open letters of credit (LC) for imports, a New Delhi-based trader told a global trading company.
“Indian buyers pay in dollars. Indian insurance companies provide coverage for ships carrying sunflower oil from Russia,” the trader said.
Source: Capital
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