Following the prolonged political unrest in Ukraine, sunflower oil exports to India are likely to be affected in the long run. Prices may go up as 90% of the oil is imported by India, according to Satendra Aggarwal, COO, Ruchi Soya Industries, one of largest manufacturers and importers of edible oils in India.
“The sowing season has started in Russia and Ukraine. As of now, there is no problem. But if the crisis prolongs for more than six months, it may cause uncertainty in terms of imports from there,” he said after launching ‘Sunrich’ sunflower oil in Hyderabad. Currently, India imports around 1.6 million tonne of sunflower oil from Ukraine and Russia.
Ukraine is the world’s biggest sunflower oil producer, and India imports about 90% of the commodity from this region. After palm oil, sunflower oil is India’s second biggest imported edible oil, which it buys at an average rate of $930 per tonne (crude). Replying to a query, he said the rupee?s depreciation against world currencies has negatively impacted oil import trade, forcing small-timers to shut shop. “As the edible oil market is price-sensitive, currency fluctuation will always have an impact on the market,” he explained. Meanwhile, the company is planning to enter the branded ready-to-cook food segment in a big way. It already has soya chunks food brand, Nutrela Instant, in its portfolio. It is looking to launch breakfast cereals and Indian snacks as well.
Besides, it will be launching a tomato-based ketchup and other sauces. The company is setting up a tomato processing unit in Maharashtra in a joint venture with Japan?s Kagome and Mitsui. ?The plant will be ready within a year. Initially, we will be offering processed tomato and, later, we will move to tomato-based food products,? Aggarwal said.