Traders at the Agriculture Produce Market Committee (APMC) fear the price of sunflower oil may further increase if the situation between Russia and Ukraine does not improve. The price of sunflower oil has already seen a jump of around 20% in the last month following the tension between the two countries.
All India Edible Oil Merchant Federation (AIEOMF) says that around 70% of the sunflower oil is imported from Russia and Ukraine and the continuation of war may affect the supply which will see further price rise. The remaining requirement of sunflower oil is imported from Argentina and locally produced.
Shankar Thakkar, president of Mumbai unit of AIEOMF said that the price of sunflower oil had started rising in January after Russia's plan of invasion of Ukraine. “Around 20 to 22% price rise in sunflower oil has already been witnessed since the tension started brewing,” said Thakkar. He added that the Prime Minister Narednra Modi held a webniar meeting with the various trade bodies to understand the situation.
Thakkar said that PM Modi assured all support to trade bodies. “During the meeting, trade bodies suggested removing the GST,” said Thakkar, adding that the edible oil should be provided through a public distribution system to make them available at the right price to the end consumer. At present, there is 5% GST on edible oil.
In addition, trade bodies also sought permission to sell oil in loose instead of packaged. “The cost of packaging has also risen in the last couple of years and it also increases the overall retail cost,” said Thakkar.
According to Thakkar, from January 2021 to January 2022, around 23 lakh tonnes of crude sunflower were imported and these two countries were major suppliers. “As the ports are closed, there will be no supply of Sunflower crude oil leading to further price rise,” said Thakkar.
The price of edible oil has already been boiling for the last year and Russian invasion will further make the situation worse. Bhimji Bhanushali, secretary of the Grain, Rice & Oilseeds, Merchants’ Association (GROMA) said that the war is also pushing crude oil prices and this will further impact the overall import cost and retail price of essential commodities. “With the control in Covid cases, prices of commodities were coming under control. However, if the present situation continues, the price will rise again,”said Bhanushali.
Thakkar says that one can check the retail price of sunflower oil. “The average quality sunflower oil crossed Rs 160 per liter from Rs 130 and the premium quality crossed Rs 200 per liter,” said Thakkar.
