In view of rising global prices, export duty on Russian sunflower oil is likely to increase substantially

22-Nov-2024 04:31 PM

The rising global prices of edible oils are likely to lead to a substantial increase in the export duty on Russian sunflower oil starting in December 2024.

Currently, an export duty of $29.88 per tonne is imposed on Russian sunflower oil for November 2024. However, in December, this duty could rise significantly, reaching between $60 and $90 per tonne, and potentially increasing even further to $130-140 per tonne in January 2025, depending on the global market price trends.

Russia is one of the largest producers and exporters of sunflower oil, and India imports a significant portion of its sunflower oil from Russia.

In the marketing season from November 2023 to October 2024, India imported over 35 lakh tonnes of crude sunflower oil, with the largest share—18.06 lakh tonnes—coming from Russia.

Other countries like Romania (6.30 lakh tonnes), Ukraine (5.61 lakh tonnes), Argentina (3.95 lakh tonnes), and smaller amounts from Brazil and others also contribute to India's imports.

The rising export duties on Russian sunflower oil are expected to negatively impact India's sunflower oil imports, as the price of Russian oil could become significantly more expensive, potentially leading India to seek alternative suppliers or adjust to the higher costs.

This change could also affect the broader market dynamics, as Russia, Romania, and Ukraine are major suppliers to India.