The Russia-Ukraine conflict has brought the world to a standstill. Vladimir Putin's announcement to invade the neighbouring country terrified people and stared at the impending war-like conditions. Locals and foreigners alike, the crisis will negatively impact scores of people left stranded in parts of Ukraine that are close to the Russian border.
Apart from a humanitarian crisis, the global economy is witnessing a rollercoaster journey ahead. Several western countries have decided to impose sanctions on Russia, at risk of worsening their local situation. The unsafe nature in the post-pandemic era will become difficult to recover from after Putin's Russia culminates its complete takeover in Ukraine.
Therefore, its impact on India cannot be overlooked. The rising oil prices have set off alarm bells, with the government scrambling to look for alternative options. Apart from oil, Pharmaceutical, and Liquified Natural Gas (LNG) sectors will face the heat and the conflict intensifying in just a few days.
Edible Oil Costs Rising Sharply
India's current rise in edible oil prices is headache-inducing for Indian households. According to Business Insider, India imports close to 90% of sunflower oil from Russia and Ukraine. It is essential in Indian homes, and it is the most popular consumed edible oil in the country, followed by palm and soya oil. The prices have shot up to ₹161.94 from 145.03 per litre.
President of the Solvent and Extractors Association (SEA), Atul Chaturvedi, spoke to The Indian Express about the impending effects. He said, "Markets have the serious potential of moving northwards. Sunflower oil comes from Ukraine and Russia, and its supply chain will be disturbed." Further, he added that while Argentina can be an alternative supplier for the same, the quality for domestic demand from the South American markets cannot be fulfilled.
Since the tension intensified, Ukraine has not sent the sunflower oil shipment to India since February. With the crisis escalating, the Indian market will have to look for better alternatives to make do with as the supply chains will be strongly disrupted during this time.
Also Read: India Navigates Through Diplomatic Dilemma To Get Students Out of Ukraine