InfoSAWIT, JAKARTA – Palm oil imports to India increased 21% in March compared to the previous month. This happened for the traders substituted sunflower oil to palm oil to secure the supply stocks and sunflower oil cannot be purchased from Ukraine.
Because of the lack of soybean oil in South America, its stocks are limited. India could not use soybean as the alternative option to sunflower oil from Ukraine. Finally the country chose palm oil.
India contributed to palm oil price, as it was shown at the exchange that hit the highest numbers of all time at RM 7.268 per ton on 9 March even though it got decreasing ever since.
As quoted from Reuters, in March 2020 India imported 550 thousand tons of palm oil, or increased from February which reached 454.794 tons, a dealer in Mumbai, said.
Managing Director of G.G. Patel & Nikhil Research Co, Govindbhai Patel predicted palm oil imports in India would be better in April 2022 because sunflower imports would be decreasing because of war in Ukraine.
More than 90% of sunflower oil that India imported derived from Ukraine and Russia.
Patel claimed, India imported 210 thousand tons of sunflower oil in March 2022, increased from 152.220 tons in February and some ships came by to India which left Ukraine before the war started.
Chief Executive of Sunvin Group, Sandeep Bajoria said, Ukraine stops producing sunflower oil while distillers in India tried to import more from Russia and Argentina.
"But it has limits. We cannot import more than 100 thousand tons in every month without Ukraine. We need 200 thousand tons,” Bajoria said.
India did a 45 thousand ton – sunflower oil contract from Russia. It was the highest for April delivery because vegetable oil in the country increased because of sunflower oil is not available from Ukraine now. (T2)