Effect of Russia-Ukraine war: Edible oil will be expensive, sunflower oil supply may decrease by 25 percent

Posted on 1st Apr 2022 by rohit kumar

The ongoing war between Russia and Ukraine may reduce the supply of sunflower oil by 25% or 4 to 6 lakh tonnes in FY 2022-23. This could lead to a rise in prices. However, the prices of edible oil are already very high. The total consumption of edible oil in the country is 230-240 lakh tonnes.

 

 

In this, sunflower oil contributes 10 percent. 60% of its demand is met through imports. India imports 2.5 million tonnes of sunflower oil annually. Ukraine contributes 70% and Russia 20%.

 

 

CRISIL said Ukraine and Russia import one million tonnes of crude sunflower oil annually. About 3 lakh tonnes of sunflower oil are stuck at Ukrainian ports. In recent times, 45,000 tonnes of sunflower oil have been purchased from Russia for $ 2,150 per tonne.

 

Prices increased by 4% in February

 

Sunflower oil had gained 4% in February. However, in the last year, the prices of edible oil have increased by 15 to 20%. Despite the increase in the arrival of mustard in the country, the prices did not fall much. Sunflower oil is in high demand in the country after palm and soybean.

 

On the other hand, the storage limit of oil has been increased till December 31 to contain the prices.

Due to the Russo-Ukraine war, the government has now extended its storage limit till December 31, 2022, to control the price of edible oil and oilseeds. This limit will be applicable from April 1. Explain that due to the supply crisis, the prices of edible oils have increased in the international market. This has also affected the Indian market.

 

The government says that several measures have been taken to keep the prices low, including reducing the import duty, as well as creating a web portal. On this everyone has to give information about their stock status. In the case of edible oils, the central government has fixed a limit of 30 quintals for retailers, and 500 quintals for wholesalers.

 

Britannia to increase prices of products by up to 7 percent this year

 

Britannia will increase the prices of its products by up to 7 percent this year. The company will increase the price due to an increase in the price of raw materials. The prices of materials have increased rapidly. Commodity prices have risen due to the ongoing war between Russia and Ukraine. Supply has also been affected. Due to this, customers will have to pay more money to buy the company's products in the coming days.

 

never seen a bad two years

 

Varun Berry, Managing Director, Britannia said, “I have never seen two years that has been so bad. We earlier believed that there will be 3% inflation this year, but now it can go up to 8 to 9 percent.

 

Production of eight basic industries increased by 5.8%

 

The output of eight core industries grew by 5.8 percent in February due to the better performance of six sectors, including coal, and natural gas. According to the data released by the commerce ministry on Thursday, the output of basic industries grew by 4% in January this year. A 3.3% decline was registered in February 2021.

 

According to the data, except for crude oil and fertilizers, production in other sectors increased in February. The output of basic industries grew by 11% in the first 11 months of the current financial year i.e. April-February. agency

 

Also Read: Petrol and diesel prices increased again today, know how much the price increased