India has signed an agreement to purchase 45,000 metric tons of Russian sunflower oil at a record price for April, as prices for edible oil on the domestic market rose after supplies from the Ukraine, according to five industry executives who spoke to Reuters.
Sunflower oil from Russia could help the world’s largest importer of edible oil alleviate shortages, at a time when the availability of vegetable oils is limited due to Indonesia’s decision to restrict palm oil supplies and a lower soybean harvest in South America.
«Since it is not possible to load products onto ships in Ukraine, buyers are trying to secure supplies from Russia,» said Pradeep Chowdhry, CEO of Gemini Edibles & Fats India Pvt. Ltd, which agreed to purchase 12,000 metric tons of Russian sunflower oil in April.
The price of sunflower oil hit a record high of $2,150 per metric ton, including costs, insurance, and freight (CIF) to India, from $1,630 per metric ton before the Russian invasion of Ukraine, according to traders who spoke to Reuters.
Sunflower oil was cheaper than FCPOc3 palm oil and BOc1 soybean oil before the war in Ukraine, but as supplies from Ukraine, the leading exporter, dried up, buyers have to pay a hefty premium, Chowdhry said.
The Black Sea accounts for 60% of global sunflower oil production and 76% of exports.
Indian buyers had not been purchasing Russian sunflower oil for nearly a month, but they are now placing orders as banks are issuing letters of credit (LCs) for the imports, said a New Delhi-based trader at a global trading firm.
«Indian buyers pay in dollars. Indian insurance companies provide coverage for ships carrying sunflower oil from Russia,» said the trader.
