1 hr ago
Black Sea Disruptions Push India Toward Palm Oil
India buys most of the sunflower oil it uses from other countries.
War-related damage and delays around Black Sea ports have disrupted shipments to India.
One 20,000-ton shipment was cancelled, and other cargoes have been delayed.
This could leave India with less sunflower oil than usual in October.
Demand for cooking oil is expected to rise during the upcoming festival season.
So Indian buyers have been purchasing more palm oil instead.
Russia may send sunflower oil from Baltic ports, but those routes take longer and cost more.
A 20,000-ton Russian sunflower oil shipment to India was cancelled after port infrastructure was damaged in the Black Sea region.
About 60,000 tons of sunflower oil shipments bound for India have been delayed amid the Russia-Ukraine conflict.
October sunflower oil arrivals in India could fall to 160,000 tons, below its typical monthly need of about 250,000 tons.
Indian buyers purchased 150,000 tons of crude palm oil over three days for November and December delivery.
Russian sellers are considering Baltic Sea ports, which add freight costs and about 10 days to the voyage.
- Who
- Indian edible-oil buyers, Russian sunflower oil sellers, and trade sources.
- What
- Black Sea export disruptions have delayed or cancelled sunflower oil shipments to India, prompting increased palm oil purchases.
- Where
- Shipments are affected by disruptions at Black Sea ports; Indian deliveries are destined for the country's east and west coasts.
- When
- Ahead of the upcoming festival season; the reported palm oil purchases were made over three days this week for November and December shipment.
- Why
- War-related damage to port infrastructure and loading delays have disrupted sunflower oil exports, while Indian stocks are tight and festival-season demand is expected to rise.
Black Sea shipping
Baltic Sea shipping
Route availability and trade-offs
Black Sea shipping
Black Sea shipments have become more difficult because war-related damage has disrupted port infrastructure.
Baltic Sea shipping
Russian sellers are seeking to ship from Baltic ports such as St Petersburg and Ust-Luga, but the route costs more and adds about 10 days.
Key facts
- Cancelled shipment
- 20,000 tons of Russian sunflower oil bound for India
- Delayed shipments
- About 60,000 tons of sunflower oil bound for India
- India's monthly sunflower oil import need
- About 250,000 tons
- Possible October sunflower oil shipments
- 160,000 tons
- Recent crude palm oil purchases
- 150,000 tons in three days, for November and December shipment
- Alternative Russian ports
- Baltic Sea ports including St Petersburg and Ust-Luga
- Baltic route impact
- Higher freight costs and about 10 additional days of voyage time
Quotes
Sandeep Bajoria
President of the International Sunflower Oil Association and CEO of Sunvin Group.
“Shipping from Baltic ports means higher freight costs and an additional 10 days of voyage time.”
telegraphindia.com
“But there is no other option, as Black Sea infrastructure is crumbling because of the war.”
telegraphindia.com
Sources
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