Shortage of sunflower oil amid the ongoing Russia-Ukraine war has sent crude palm oil prices through the roof. The geo-political worries in the Black Sea region has a significant bearing on sunflower seed and its oil supply from the region, as both countries involved in the war are major sources for the oilseed.
India is a major importer of crude palm oil, as the country meets more than two-third of its edible oil needs through imports, of which palm oil accounts for more than 60 per cent. India imports more than 2.5 million tonnes of sunflower oil, including from Russia and Ukraine.
In reaction to possible supply disruption of sunflower oil, palm oil prices rallied sharply as all the edible oils track each other's prices as they compete in the market for price realisation, and any potential supply disruption for one variant buoys the prices of others.