The Indian government is trying to increase the supply of vegetable oils, that can lead to significant changes on the market in the next 5 years, Sandeep Bajoria, president of Sunvim Group said during his speech at the online conference Sunflower Seed And Oil: New Reality On Global Market organized by APK-Inform on July 7.
In particular, taking into account the country's efforts to increase its own production of vegetable oils, their import may not exceed 16 mln tonnes per season in the next 10 years. In 2021/22 MY (November 1 - October 31), the import of vegetable oils to India is forecast at 12.6 mln tonnes (-0.8 mln tonnes y/y).
The Indian government has reduced the duty on the import of vegetable oils to 5.5% on sunflower, palm and soybean oils since February this year, due to which the import of soybean oil into the country may increase to 3.5 mln tonnes in 2021/22 MY against 2.8 mln tonnes in 2020/21 MY. The import of sunflower oil may amount to 1.7 mln tonnes against 1.87 mln tonnes in the previous season.
In 2022/23 MY, it is expected that Ukraine, as the largest producer and exporter of sunflower oil, will be able to harvest a high sunflower crop and maintain a high potential for sunflower oil export. However, due to the high domestic consumption of sunflower oil in India and the reduced supply of the Ukrainian product due to the war, India is forced to increase the purchase of the product from Argentina, Russia and Moldova.
"But we hope that the world community will be able to help Ukraine unblock the Black Sea ports in order to prevent the rise of prices on the world market, the hike of inflation and hunger in a number of countries", – S. Bajoria noted.