Ukraine-Russia fire will spark inflation, crude, food prices skyrocket

Ahmedabad: Russia has launched a war by attacking Ukraine. President Putin says he has no desire to occupy Ukraine but could do so. Putin wants to bring back the days of his former Soviet Union. On the other hand, despite good relations with India, if chaos spreads in Ukraine, instability could affect India.

Not geographically, not in terms of imports and exports or the economy, but the protracted Ukraine war in the kitchen could have serious repercussions. In India, the effects of the tense situation in Russia and Ukraine can be seen on things like edible oil, maize, wheat.

One, India is the largest importer of edible oil in the world. India imports palm oil from Indonesia and Malaysia, soyoil oil from Argentina and sunflower oil from Ukraine. Ukraine accounts for 40% of India's total sunflower oil imports. The area in which Ukraine is located is called the Black Sea region. With 70 per cent of the world's sunflower oil being produced and 5 per cent exported from here, there are few options.

If such a large import (last year 12.5 lakh tonnes) goes to India to buy from another country or if it buys the same amount of other oil, huge oil prices could skyrocket. At present, Indian oil producers may have a shortage of imported oil, so it may not have an immediate effect, but it can be felt through market prices.

Palm oil prices in Malaysia crossed 2,000 ringgit per tonne on Wednesday on rising crude oil prices. In one year, palm oil prices have risen by 20 per cent. After the attack on Thursday, the May futures rose another 7.5 per cent to 70 ringgit.

Wheat prices hit a nine-year high, corn an eight-month high and soybean a ten-year high in the US market as Russia attacked today. Today saw a bullish circuit in all three futures. Russia and Ukraine together have a monopoly on 5% of the world's wheat exports and 15% of corn exports, so prices of both commodities have risen. Wheat futures for May delivery rose 2.3 points to ૩૪ 2.8 a bushel, corn futures rose 2.6 percent to ૩ 2.15 a bushel and soybeans rose 1.4 percent to ૬ 17.8 a bushel.

Rising prices of local edible oils

Due to the rise in crude oil prices in the international market and the war between Ukraine and Russia, the price of edible oils in the Ahmedabad oilseed market today rose by Rs. Up to 100 was recorded.

Today, Singtel tin costs Rs. 20 to 20, cottonseed oil tin Rs. 50 to Rs. 50, soybean tin Rs. 30 increased to 50, palmolin tin ra. 100 increased to Rs. 30, sunflower oil Rs. 50 increased to Rs. 30 and corn oil to Rs. 30 increased to 200.