How the Ukraine-Russia war affected sunflower oil consumption in India

Published 2023년 5월 23일

Tridge summary

The article provides an overview of the dynamic pricing of edible oils, with a focus on sunflower oil, over the past 2-3 years. It highlights the significant price fluctuations, reaching record highs due to the war in Ukraine and the subsequent fall in prices following the Black Sea Grain Initiative. The article also touches on the impact of these price changes on India's edible oil market, where sunflower oil imports have seen a notable increase, shifting consumer preferences and trade dynamics. Additionally, the article discusses the role of domestic production in shaping consumer habits and the importance of key regions in India's sunflower oil consumption. It concludes by mentioning the players involved in the import and distribution of branded sunflower oil in India, including both local and multinational companies.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Few commodities have witnessed as much price volatility over the last 2-3 years as edible oils. The UN Food and Agriculture Organization’s global vegetable oils price index (2014-16 base period value = 100) plunged to a low of 77.8 points in May 2020 at the height of the worldwide Covid lockdowns. It soared to an all-time-high of 251.8 in March 2022 after Russia’s invasion of Ukraine. But by April 2023, it was down to a 29-month-low of 130 points. Within the vegetable fats complex, the oil that has witnessed the highest price rise and fall in just the last one year is sunflower. Not surprising, given that Ukraine and Russia together accounted for nearly 58% of the world’s production of this oilseed in 2021-22. As the war shut off their supplies through the Black Sea ports, prices skyrocketed. In January 2022, prices of crude sunflower oil imported into India averaged $1,475 per tonne CIF (cost plus insurance and freight). This was below the corresponding price of $1,506 for crude ...

Source: UkrAgroConsult