Sunflower oil prices have witnessed a significant decline, surpassing a 10% drop below the prices of soybean oil. FMCG giants such as Adani Wilmar, Gemini Edibles & Fats India, and Tirupati Agritrade have attributed this price disparity to the influx of sunflower oil from Ukraine into the Indian market. The surplus supply of Ukrainian sunflower oil has exerted downward pressure on its prices, resulting in the current market situation.
According to reports, Ukraine is currently exporting a significant amount of wheat in the global market. Analysts have stated that this development could potentially affect the wheat prices in India, which have experienced a notable increase of 10-11% over the past two months.
Experts have pointed out that although wheat prices are expected to stabilize, the same cannot be said for rice prices. Recent data indicates that rice prices have surged by 15% in the last two weeks due to an unsatisfactory rabi rice crop in Bihar, Uttar Pradesh, Madhya Pradesh, and Odisha.
“Prices of sunflower oil are now hovering around INR 110-120 for one litre pouch at the retail end, while soybean oil is at INR 130 per litre,” said Angshu Mallick, Managing Director, Adani Wilmar. “Ukraine is pushing a lot of sunflower oil into India to offload its stock. We are expecting healthy demand for sunflower oil as prices are on the lower side.”
To meet its domestic demand, India imports approximately 2-2.5 million tonnes of sunflower oil on an annual basis.
Pradeep Chowdhry, Managing Director of Gemini Edibles & Fats India, said prices of all oils are on the lower side and, therefore, the demand remains strong. “International supply of all oils is in a comfortable position,” he said.
According to Mallick, the prices of wheat have witnessed a 10% increase over the course of the past two months.
“But if Ukraine starts offloading wheat in the world market, then prices globally will come down. This will have an impact on domestic wheat prices as well,” he said.
Wheat is currently being traded at INR 2,500 per quintal in Delhi. Despite a larger wheat crop compared to the previous year, the availability of wheat during the peak harvest season was limited, resulting in price escalation. As per the agriculture ministry’s third advance estimate, wheat production is projected to reach a record high of 112.7 million tonnes, reflecting a 4.6% year-on-year growth.
Suraj Agarwal, CEO, Tirupati Agritrade, which sells rice under the brand name RiceVilla, said the production of the common variety of non-basmati thick rice has been less during this year’s rabi season. “Prices of this variety have gone up 20% in the last fortnight. This has also put an upward pressure on other varieties of rice, the prices of which have gone up 15%,” he said.