RUSSIA – UKRAINE WAR EFFECTS ON INDIA, HOW WILL THE WAR AFFECT THE RATE OF EDIBLE OIL IN INDIA ?

(The Quiver) : Brent crude prices breached the$100 per barrel  on Thursday, for the first time since September 2014, following Russian President Vladimir Putin’s announcement authorising a military   in the Donbass region in Ukraine.Explosions were heard loud before dawn in Kyiv, the capital city of Ukraine, shortly after the announcement on Thursday.

One of the direct effects of the Russia-Ukraine war would be a further escalation of edible oil prices, especially that of sunflower oil, traders and solvent manufacturers have warned. They have also warned of prices moving northward due to disruption of the supply chain.

The former Soviet republic is the single-largest import destination of crude sunflower oil for India.

This war comes at a time when inflation in edible oil is a major concern in the domestic markets. The price of refined sunflower oil in the retail market has shot up to Rs 161.94/litre as compared to Rs 145.03/litre, according to the Price Monitoring Cell of the Union Ministry of Consumer Affairs. Supply chain disruption can easily see prices increasing significantly.

Another fall out of this war is a sudden escalation of the average traded price of soyabean across the wholesale markets in the country. At Latur’s wholesale market in Maharashtra prices, which were at Rs 6,200 per quintal, has since the last two days have crossed Rs 7,000/quintal.