Imports fell 54% from last month as shipments from the Black Sea region were affected
Imports fell 54% from last month as shipments from the Black Sea region were affected
Four dealers told Reuters that India’s sunflower oil imports fell 54% in February, while palm oil imports fell 15% in February as shipments from the Black Sea region were affected after Russia invaded Ukraine.
February’s low imports could force India, the world’s biggest edible oil importer, to increase overseas purchases of palm oil and soya oil in March, with prices already hovering near records.
1,40,000 tonnes of sunflower oil landed in India in February, up from 3,07,684 tonnes in January, said a Mumbai-based dealer with a global trading firm.
“Even before Russia’s invasion of Ukraine, the loading of ships was slow due to tensions in the Black Sea region,” said Sandeep Bajoria, chief executive of vegetable oil brokerage and consultancy Sunwin Group.
Ukraine and Russia account for more than 90% of India’s sunflower oil imports.
Sudhakar Desai, president of the Indian Vegetable Oil Producers Association, said that in March also, India’s sunflower oil imports will be less than 140,000 tonnes as loading has stopped in both the countries.
“Only a few pre-war ships will reach India this month,” Mr. Desai said.
The Solvent Extractors Association of India, a trade body based in the commercial capital of Mumbai, is likely to publish the February import data in mid-March.
India’s palm oil imports fell to 4,70,000 tonnes in February, while soya oil imports declined 5.5% to 3,70,000 tonnes in February, dealers said.
Govindbhai Patel, managing director of trading firm GG Patel & Nikhil Research Company, said palm oil imports fell in February due to higher prices and since it was a shorter month.
Dealers said total imports of vegetable oil in February fell 22% from January to 9,80,000 tonnes.
Imports could reach 11 lakh tonnes in March as more palm oil ships are expected to land this month, Mr Patel said.
India buys palm oil from top producers Indonesia and Malaysia and imports soya oil mainly from Argentina and Brazil.