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Government mulls edible oil import options
The prices of cooking oils, including sunflower, have been rising as disruption of supplies of sunflower oil due to the on-going Russia-Ukraine conflict threatens to make the situation worse. Prices of palm oil, soyabean oil have also gone up in the last few weeks.
The central government is talking to countries in South America and South East Asia amid concerns of a short supply of sunflower oil from Ukraine. India imports around 70% of its sunflower oil from the Ukraine-Russia region and these supplies have been disturbed due to the on-going war between the two countries.
The prices of cooking oils, including sunflower, have been rising as disruption of supplies of sunflower oil due to the on-going Russia-Ukraine conflict threatens to make the situation worse. Prices of palm oil, soyabean oil have also gone up in the last few weeks.
"Even though we have adequate reserves of edible oil, we are exploring other options for imports," said an official of the Ministry of Consumer Affairs, who did not want to be named.
"India consumes about 2 lakh tonnes of sunflower oil per month. In the month of February, 1.5 lakh tonnes of sunflower oil have left for India. However, the situation for March is looking difficult," said Sandeep Bajoria, president, International Sunflower Oil Association.
Speaking about the alternatives available for India, Bajoria said, "The only other feasible alternative for sunflower oil import is Argentina. We have already increased contracts for import of sunflower oil from Argentina. However, if we can establish rupee-rouble trade between India and Russia, then we can still import sunflower oil from Russia. If a ceasefire between Russia and Ukraine takes place, then we can start shipments of sunflower oil even from Ukraine."
However, the prices of mustard oil and groundnut oil have either moderated or remain unchanged. Industry experts said while the conflict has pushed the prices up, there will be no shortage of edible oil in the country. About 110 lakh tonnes of mustard crop production is estimated in the local market and around 70-80 lakh tonnes of uncrushed soyabean is also available, said B V Mehta, executive director of Solvent Extractors Association of India. Mehta added that said prices of palm oil, which is seen as an alternative to sunflower oil, have gone up due to Indonesia's trade policy.
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