InfoSAWIT, MUMBAI – The increasing tense in Black Sea in March 2022 once led crude palm oil (CPO) as the most expensive one among four main vegetable oils because the buyers wanted to get alternative oil for sunflower oil which the supply was bothered by the close port because of the war between Russia – Ukraine.
The Russian invasion to Ukraine made empty stock of vegetable oil in the globe. This would be difficult to be recovered in the very short. The crisis pressed the cost and supply in the world. CPO price escalated substantially as the direct response to the possible issue of sunflower oil supply.
CPO hit the new peak price, surpassed subtropical vegetable oils, such as, soyoil. Few weeks after the war happened, vegetable oils retail price in India, such as, CPO, soyoil, and sunflower oil increased 12,5%, 8%, and 14,4% for each.
Ministry of Finance, India, Nirmala Sitharaman said, the government is still searching for the alternative source to import sunflower oil because the supply is influenced by the war in Russia and Ukraine. She would re-do the government’s plan to make India independent in vegetable oil (production) to avoid the future supply disturbance. The other main vegetable oil exporters, such as, Argentina, Canada, and Ukraine knew the stocks got decreasing in the past few months and this intensified the tension and uncertainty in the vegetable oil markets. (T2)
Source: InfoSAWIT, July 2022