Russia-Ukraine war likely to raise import price of sunflower oil, yellow peas
The escalation of the Russia-Ukraine war could raise India’s import costs for sunflower oil and yellow peas, as attacks and shipping disruptions in the Black Sea have sharply reduced exports from the region.
The Russia-Ukraine war is poised to raise the import price of sunflower oil and yellow peas in India, according to industry experts. The conflict has almost halted exports from the two countries through the Black Sea, with major shipping lines suspending trade on the route. This has created a glut at origin and shortages in international markets.
Sandip Bajoria, CEO of Sunvin group, stated that the ports, processing units, and shipping routes in the Black Sea region have been targeted by drone attacks, further exacerbating the situation. As a result, India's sunflower oil imports in August are expected to drop from 300,000 tonnes to 180,000 tonnes. Deepak Pareek, founder of agri-advisory firm HnyB, warned that the Black Sea disruption is becoming a physical supply-flow problem, rather than just a price issue.
Freight constraints, higher insurance costs, and uncertain vessel movement are limiting the availability of sunflower oil and yellow peas. This concentration on alternative origins, such as Canada, could lead to higher landed costs and potential shortages in essential food commodities.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
