New Delhi July 28 2022: India, the world’s biggest edible oil importer, will likely receive its first shipments of sunflower oil from Ukraine starting in September after a five-month gap, according to Sunvin Group.
About 50,000 to 60,000 tons may arrive as Ukraine is set to open some Black Sea corridors for agricultural exports, said Sandeep Bajoria, chief executive officer of the Mumbai-based broker and trader. The cargoes will likely be loaded at the seaports of Odesa and Chornomorsk, he added.
“We have started getting offers for August shipments, but it will all depend on availability of vessels,” Bajoria said. “Ukraine has adequate supplies of oilseeds for crushing.”
India’s imports of sunflower oil from Ukraine have been at a standstill since April as Russia’s invasion of the country disrupted trade. Moscow and Kyiv reached a deal last week to revive agricultural exports from Ukraine, one of the world’s biggest wheat, corn and vegetable oil exporters.
A move by the Indian government to allow duty-free imports of 2 million tons of sunflower oil annually this fiscal year and next will bolster demand. India bought 1.89 million tons of crude sunflower oil in the year ended October, with Ukraine supplying almost 74%, and Argentina and Russia each about 12%.
Just as sunflower oil imports from Ukraine are set to resume, India will also boost purchases of palm oil after a slump in prices. Imports by the biggest buyer will climb to 800,000 tons in September from 750,000 tons in August, Bajoria said. That’s mainly due to more demand for fried foods during festivals and because palm is much cheaper now compared with other oils, he said.
