Bhopal/Chandigarh: Days after the Russian invasion into Ukraine in what appears to be the greatest military escalation inside Europe in recent years, the economic waves have reached Indian shores. Sunflower oil, a major edible import from both Russia and Ukraine, saw a surge of Rs 20/30 per kg in the Indian retail market on Monday.
Alongside sunflower, palm oil and soybean oil have seen an increase in prices. Speaking to ETV Bharat, Vivek Sahu, a grocery trader in Bhopal, said that since the beginning of the war, edibles have seen an increase in prices. "Since the war began, prices all around have increased. Prices of various types of oils have increased on an average of Rs 30 to Rs 40 per kg. The ships carrying sunflower are all stationed there. Mustard and other seeds too have seen an uptick in prices", he said.
"When Russia and Ukraine were holding talks, Rs 10/kg hike had occurred. Since the war, another Rs 10 hike has taken place. Sunflower oil has been the hardest hit. It looks like in the foreseeable future, too, the (economic) trouble will further increase," wholesale oil trader Krishna Kumar Bangad said.
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As per retail prices are concerned, sunflower oil is being sold at Rs 170 to 180/kg, whereas mustard oil and soybean oil are at Rs 200/kg and Rs 160-170/kg so far.
The government, however, appears to be taking measures to stagger the blow and minimize the impact, as the upper limit of 30 quintals have been imposed for retailers of edible oil, whereas for wholesalers, the limit has been set at 500 quintals. For oil depots, on the other hand, the stock limit is 1000 quintals.
Out of 25 lakh tonnes of sunflower oil, India imports about 17 lakh tonnes from Ukraine every year, while 2 lakh tonnes are imported from Russia.
Economics professor Bimal Anjum, from Chandigarh, said that the country should be prepared to face tough times ahead, especially when it comes to imports. "No preparation was done for this in advance. The sunflower oil supply can be hindered. However, since this is the age of global markets, India can look at other options, granted it will not be easy. Many farmers in central India plant sunflower crop, but the government never paid any attention to it. In case of a suitable price and government's encouragement, we will not have to depend on other countries for sourcing sunflower oil " Anjum opined.
However, he stated that sunflower production is technology-intensive, and requires heavy investments. With assistance, farmers can set up required facilities.
