Prolong Russia-Ukraine War Exacerbates Sunflower Oil Prices in Global Market
- 09-Jun-2022 8:24 AM
- Journalist: S. Jayavikraman
As per the ChemAnalyst report, the price of Sunflower Oil has keenly hiked in the last few months due to supply disruptions owing to ongoing Russo-Ukrainian war.
Recently, the Indian government has exempted customs duty and agriculture infrastructure growth tax on 20 lakh metric tonnes yearly import of sunflower oil to ease domestic prices. The exemption will help to control inflation and surging local prices of food. According to our analysis, there has been a significant decrease of 3% in the price of Sunflower Oil in the Indian market.
On the other side, Ukraine has also experienced rebels in the price of Sunflower Oil on account of the ongoing war with Russia in the country. Ukraine is the world's biggest sunflower oil exporter, but the Russian invasion has made farming, producing, and shipping difficult, pushing global prices and triggering rationing in some countries. In accordance with the ChemAnalyst market report, it has been observed that fuel shortage and supply disturbance are the main factors behind these price revisions in Ukraine, as it has been difficult for domestic players to move cargoes within the country.
In Russia, the price of Sunflower Oil has increased by 2.4% during the first week of June. ChemAnalyst analysis shows that, the cost of freight for sunflower oil shipments has soared to record highs as Russia's prolonged blockade of Ukraine's Black Sea ports continues to restrain the export market. Moreover, challenges with rallying shipping prices are compounded by dwindling storage for sunflower produce, forcing manufacturers to be careful to avoid overproduction.
As per ChemAnalyst analysis, it is expected that global Sunflower Oil are likely to remain buoyant during the forthcoming month, as the current market scenarios are not going to vanish soon, and the end of Russia-Ukraine war is uncertain.