Rata Samudra crisis: Import of sunflower oil becomes expensive as transport costs rise

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New Delhi: Raid in the night sea may affect sunflower oil imports in India. India's sunflower oil imports are likely to fall in the coming months as prices rise due to a hike in freight rates. This leads buyers to switch to competing vegetable oils available at a discount.

India, the world's largest buyer of sunflower oil, normally imports most of its imports from the Black Sea region via the Red Sea.

However, recent Houthi attacks have forced shipping companies to resume trade between Europe and Asia, bypassing Africa. This has increased time and cost.

The price of sunflower oil in India has surpassed that of soybean oil for the first time in almost a year due to a rise in freight rates. Sunflower oil was cheaper than soybean oil. Therefore, in the last few months, sunflower oil imports have strengthened due to the price advantage compared to soybean oil. Now due to the increase in freight, it is no longer a profitable situation for sunflower oil.

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