Key Takeaways
- A 20,000-ton shipment of Russian sunflower oil was cancelled due to port damage.
- About 60,000 tons of sunflower oil bound for India are delayed.
- Indian buyers are increasing palm oil purchases to meet festival season demand.
A shipment of Russian sunflower oil bound for India was cancelled due to damage to port infrastructure in the Black Sea region, according to an industry official.
The cancellation is rare in the sunflower oil trade and highlights the impact of the Russia-Ukraine conflict on global supply chains.
About 60,000 tons of sunflower oil bound for India have been delayed, forcing Indian buyers to increase their purchases of palm oil ahead of the festival season.
The disruption has led to higher freight costs and an additional 10 days of voyage time for shipments from Baltic Sea ports such as St Petersburg and Ust-Luga.
India, which imports almost all of its sunflower oil, needs about 250,000 tons of imports a month, but October shipments could fall to 160,000 tons due to delays.
Sunflower oil stocks have been depleted due to below-average imports in recent months, and with demand for edible oils expected to rise during the festival season, India has been turning more to palm oil.
Russia is now seeking to ship sunflower oil from Baltic Sea ports as shipments from the Black Sea have become more difficult.
India's vegetable oil brokerage Sunvin Group CEO Sandeep Bajoria stated, 'But there is no other option, as Black Sea infrastructure is crumbling because of the war.'
But there is no other option, as Black Sea infrastructure is crumbling because of the war.
Sandeep Bajoria, CEO of Mumbai-based vegetable oil brokerage Sunvin Group
