Traders begin making deals to import 50,000 tonnes of soybeans and palm oil each

However, as the Russian invasion approached, prices had already increased by $100 per ton. Today, soybean oil is $1,690 a ton and CPO is $1,700 a ton,” he said.

Indian traders are closing deals to import 50,000 tons of soybean oil and 50,000 tons of palm oil with reports of solar oil shipment delays, following the Russian invasion of Ukraine, industry officials say.

“Traders are not rushing too much because they think the situation with Russia and Ukraine may improve in the next 15 days. Stabilization, local sowing operations and transport should start soon. The India wants oil but is waiting to see how the situation develops in the next 15 days,” said Sandeep Bajoria, president of the International Sunflower Oil Association.

Bajoria, who is also the managing director of one of India’s biggest edible oil brokers, Sunvin Group, added that India could buy around 50,000 tonnes of soybean oil and 50,000 tonnes of palm oil. additional due to the lack of sunscreen oil. “During the meeting with Union Trade Minister Piyush Goyal, we asked the government to allow the free ruble window, so that when the situation normalizes, we can continue to import. edible oils should not be included in penalties,” he said.

“Right now traders are contracting soybean oil from the United States and Brazil and palm oil from Malaysia. Prices have increased as supplies are hampered. On the first day of the invasion, prices had risen by $100 a ton, but yesterday when it became clear that NATO would not send troops, prices fell by $75 a ton.

However, as the Russian invasion approached, prices had already increased by $100 per ton. Today, soybean oil is $1,690 a ton and CPO is $1,700 a ton,” he said.

India obtains more than two-thirds of its edible oil supply from imports and purchases around 1.25 million tonnes of cooking oil every month. Palm oil is generally the dominant oil used in India, but importers have had to buy more soybean oil and sunflower oil this year due to reduced palm oil supplies from the main Indonesian exporter. , which pushed palm prices to record highs. About 85% of soybean oil in India is imported from Argentina and Brazil, while 90% of sunscreen oil is imported from Ukraine and Russia. Almost all of India’s palm oil needs are met by Indonesia and Malaysia. According to ICRA, palm oil accounts for about 40% of total consumption in India and 60% of imports. Significantly, Indonesia, one of the biggest exporters of palm oil to India, has asked its producers to sell 20% of their planned exports only in the domestic market, which is expected to lead to a shortage. supply in the world market.

Sudhakar Desai, chairman of the Indian Vegetable Oil Producers Association (IVPA), said there had been a steady increase in demand for soybean oil from both domestic sources and imports from India. Argentina and Brazil due to the tense palm oil situation, Indonesian restrictions and the narrowing price gap with palm oil. India normally needs 3 to 3.5 lakh tonnes per month, but with a journey time of 60 to 70 days, soybean oil requires advanced supply chain planning, Desai said. The new crop is currently underway in Argentina and Brazil so availability is not an issue. Hopefully, sun oil imports will resume soon, he said.

Atul Chaturvedi, chairman of the Solvent Extractors Association of India (SEA), pointed out that getting so much soybean oil overnight is not going to happen, but there is no problem with it. soybean oil and that we are pretty well covered at the moment. “Palm oil and soybean oil combined should ease the burden to some extent and the mustard harvest is fast approaching and the milling should start in 15 days, which may ease the pain. There is a sunscreen oil stock for 30-40 days and things might calm down soon and I don’t see too many people taking too big a risk,” he said.

Manoj Agrawal of Maharashtra Oil Extractions agreed that although the current supply situation is tight, the situation could improve by the end of March. Vivek Pathak, Director, Trade and Business Development, Athena Tradewinds, said some contracts have taken place for soybean oil and palm oil in West Asia and for rapeseed from Romania.

A total of 50,000 to 60,000 tons of soybean oil and sunscreen oil are expected to enter the country, but shipments have been delayed. We urged the government to ask Malaysia and Indonesia not to increase their biodiesel mandates to cool prices. Indian traders should also sell their goods at the buying price in the national interest instead of chasing the profits, he said.

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