India, the world’s largest importer of edible oil, will likely receive its first shipments of sunflower oil from Ukraine starting in September after a five-month gap, according to Sunvin Group.
Around 50,000 to 60,000 tons may arrive as Ukraine is ready to open some Black Sea corridors for agricultural exports, said Sandeep Bajoria. Sandeep Bajoria is a corridor’s chief executive and Mumbai-based trader. The cargoes will likely be loaded at the seaports of Odessa and Chornomorsk, he added.
“We have started receiving offers for August shipments, but everything will depend on the availability of the vessels,” Bajoria said. “Ukraine has adequate supplies of oilseeds for crushing.”
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Indian imports of sunflower oil from Ukraine have been stagnant since April, as the Russian invasion of the country disrupted trade. Moscow and Kiev reached an agreement last week to revive agricultural exports from Ukraine. One of the world’s largest exporters of wheat, corn and vegetable oil.
A move by the Indian government to allow duty-free imports of 2 million tons of sunflower oil annually this fiscal year and the next will boost demand. India bought 1.89 million tons of crude sunflower oil in the year ending in October, with Ukraine supplying nearly 74%, and Argentina and Russia each about 12%.
Just as Ukraine’s sunflower oil imports will resume, India will also boost palm oil purchases after a drop in prices. Imports from the biggest buyer will rise to 800,000 tons in September from 750,000 tons in August, Bajoria said. That’s mainly because of increased demand for fried foods during festivals and because palm is much cheaper now compared to other oils, he said.
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