India: Sunflower oil can continue to be imported from Russia in the rupee-ruble trading system

Published 2022년 2월 28일

Tridge summary

Due to the conflict between Russia and Ukraine, India is experiencing partial disruption in the supply of sunflower oil, accounting for 65% of its edible oil imports. To maintain the domestic supply and stable prices, the Indian Association of Vegetable Oil Producers is exploring alternatives by considering importing soybean and palm oil from other countries. Indian Commerce Minister Piyush Goyal has met with the edible oil industry to assess the situation and seek ways to increase product availability. The meeting covered proposals such as increasing domestic supplies and exploring more import options like palm oil from Indonesia or rapeseed oil from Dubai. There is also consideration of continuing sunflower oil imports from Russia using the rupee-ruble trading system to avoid sanctions. This situation highlights the significant reliance of India on the Black Sea region, which produces about 60% of the world's sunflower oil, for its supply.

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Original content

Due to the fact that the supply of sunflower oil is partially disrupted amid the conflict between Russia and Ukraine, representatives of the Indian Association of Vegetable Oil Producers (Solvent Extractors’ Association of India, SEA) began to consider possible options for importing products from other countries. It is reported by oilworld.ru with reference to The Economic Times. According to traders, at the moment it is not known when the shipment of products worth 570 million from Ukraine and Russia can be resumed, which forces Indian buyers to replace sunflower oil with soybean and palm oil for delivery in March and April this year, APK-Inform reports. Industry participants in India expect domestic vegetable oil prices to remain stable as Indian mustard oil supply improves from next month. “Sunflower oil supplies have been interrupted. India annually imports 70% of the product from Ukraine, 20% from Russia and 10% from Argentina,” said SEA Executive Director BV Mehta. The ...

Source: Oilworld