Sunflower oil may cool as supply from Ukraine resumes

Prices of sunflower oil are expected to fall during the festive season as shipments from Ukraine to India have resumed after Russia, Ukraine and Turkey entered into an agreement to supply food items to the global markets.

The first vessel, with 42,000 tonnes of sunflower oil, which will come to India will be loaded by the end of August and the second vessel, containing 20,000 tonnes of sunflower oil, will be loaded on September 4, said people aware of the matter.

Edible oil traders said these consignments will reach India by Dussehra (October 5), thus ensuring ample supply of sunflower oil during the festive season. As per the agreement, the Russian Federation has committed to facilitate unimpeded export of food and sunflower oil from Ukrainian controlled Black Sea ports.


"Prices of edible oils across categories have come down from the peak level. The arrival of sunflower oil from Ukraine will further soften the entire edible oil complex," said Sandeep Bajoria, CEO of vegetable oil brokerage and consultancy firm Sunvin Group. Prices of imported sunflower oil have fallen to $1,520 per tonne from around $2,350 per tonne at the beginning of the year. "Prices are expected to fall further when sunflower oil from Ukraine starts entering the market," said Bajoria.

On July 22, senior representatives from Ukraine, the Russian Federation and Turkey had gathered to discuss safe transportation of grain, related foodstuffs and fertiliser from Ukrainian ports to global markets. The UN signed the agreement as a witness. The purpose of the initiative is to contribute to the prevention of global hunger, to reduce and address global food insecurity, and to ensure the safety and security of merchant ships entering or departing Ukrainian ports.