New Delhi, India (CU)_ According to Sunvin Group, India, the largest importer of edible oil in the world, will get its first consignment of sunflower oil from Ukraine in September, following a five-month delay. Sandeep Bajoria, chief executive officer of the Mumbai-based broker and trader, estimates that between 50,000 and 60,000 tons of agricultural exports may arrive as a result of Ukraine’s upcoming opening of the Black Sea routes. He noted that the goods will likely be loaded at the ports of Odesa and Chornomorsk.
Bajoria said, “We have started getting offers for August shipments, but it will all depend on the availability of vessels. Ukraine has adequate supplies of oilseeds for crushing.” India’s purchase of sunflower oil from Ukraine has been halted since April due to Russia’s invasion of the nation, which has affected trade and commerce. However, last week, Moscow and Kyiv signed an historical agreement to resume agricultural exports from Ukraine, which is one of the world’s largest exporters of wheat, corn, and vegetable oil.
The demand will increase as a result of the Indian government’s decision to permit duty-free imports of 2 million tons of sunflower oil yearly for the current and subsequent fiscal years. In the year ended October, India purchased 1.89 million tons of crude sunflower oil, with over 74% coming from Ukraine and around 12% coming from Argentina and Russia each.
In tandem with the resumption of sunflower oil imports from Ukraine, India will also boost imports of palm oil following a price decline. According to Bajoria, imports by the largest purchaser will increase from 750,000 tons in August to 800,000 tons in September. He stated that this is mostly due to the increased demand for fried meals during celebrations and the low cost of palm oil in comparison to other oils.
