For the first time in India, palm oil has become the most expensive edible oil among the 4 major edible oils. Significantly, with the Russian invasion of Ukraine, the supply of sunflower (sunflower oil) in the country has stopped. Due to which buyers are turning to palm oil as an alternative to sunflower oil, due to which there is a huge increase in the prices of palm oil.
Significantly, the Black Sea area of Eastern Europe is known for the production of sunflower (sunflower oil), but due to the Russian invasion, there has been chaos in this entire area, due to which the supply of sunflower oil in the country has decreased, which is beneficial for palm. Getting oil.
This increase in palm oil prices can have a huge impact on the pockets of consumers in already suffering from inflation in Asian and African countries. Due to which they may be forced to reduce their consumption.
In the international market, the price of crude palm oil (CPO) is seen at $ 1925 per tonne. On the other hand, the price of crude soya oil is seen at $ 1865. These are the shipping prices for India in March. On the other hand, crude rapeseed oil prices are around $ 1900 per tonne, while traders are not able to ship sunflower oil due to the closure of boats due to Ukraine crisis.
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Due to the Ukraine crisis, palm oil prices in India have reached their highest level in comparison to soybean oil. Let us tell you that the Black Sea region accounts for 60 percent of the world’s sunflower oil production and 76 percent of its exports. Ukraine’s ports will remain closed until the Russian invasion ends.
A dealer at a Mumbai-based global trading firm says Asian and European refineries have increased their purchase of palm oil for near-month shipments to fill SunOil’s space. They also have the option of buying soya oil but the possibility of immediate shipment of soya oil is limited. It will take more time than palm oil to reach Asia, keeping in mind that dealers and traders are increasing the import of palm oil. Due to which the prices of palm oil are seeing an increase. Apart from this, there is a possibility of decline in soybean production due to drought in Argentina, Brazil and Paraguay. Palm oil is also getting the benefit of this.
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