Rising Costs and Global Tensions Impact India's Sunflower Oil Imports

India's crude sunflower oil imports fell sharply due to geopolitical tensions in West Asia and disrupted Black Sea routes, raising costs. The Solvent Extractors' Association of India reported a significant cost increase, driven by a rising import price and Indian rupee depreciation. India explores alternatives with Mercosur for diversification.

India's sunflower oil imports have plummeted by 51% in February amid escalating geopolitical tensions affecting key trading routes. The Solvent Extractors' Association of India (SEA) highlights the severe impact on costs, with the import price surging by 17% alongside a weakening rupee, exacerbating the economic strain.

The ongoing conflict in West Asia, compounded by disruption in Black Sea shipping and tensions in the Red Sea and Suez Canal, continues to challenge India's supply chain. These hurdles have prompted India to seek new supply agreements with Mercosur nations as it looks to mitigate dependence on traditional sources.

Amid these challenges, Russia and Ukraine, major suppliers, remain embroiled in conflict, threatening further disruptions. Additionally, India's oilmeal exports risk encountering logistical delays, impacting supplies to Southeast Asia and the Middle East, while rising interest in palm oil-based biodiesel is noted among biofuel producers.

(With inputs from agencies.)