Sunflower oil processors in Andhra Pradesh look to Argentina

Visakhapatnam: Sunflower oil processors in Andhra Pradesh may look to Argentina to import the oil if the Russia-Ukraine crisis escalates further.

In every oil year, that begins in November and ends in October, companies import sunflower oil from Ukraine via the Adani Krishnapatnam and Kakinada Sea Ports Limited ports

Nearly five oil companies with a capacity of 2,550 metric tonnes (MTD) receive sunflower from Ukraine, which is the world's largest sunflower oil exporter to all countries in which India's share will be nearly 35-40 per cent.

So, nearly 10 lakh metric tonnes of sunflower oil is imported every year by the oil companies through the two AP ports every oil year.

With supply likely to be affected due to the Ukraine crisis, the oil companies in the state would choose Argentina as the alternative option if the situation does not stabilise in Europe.

Confirming this to Deccan Chronicle, Sandeep Shivhare, Senior Manager (Marketing and Customer Service), Adani Krishnapatnam Port, said that there could be chances of importing the sunflower oil from Argentina by the oil companies.

"Ukraine, Russia and Argentina are the top three countries to export sunflower oil. Now, Ukraine and Russia in the war, so the next option will be Argentina," Sandeep said.

An oil company functionary said that importing sunflower oil from Argentina is costlier than in Ukraine and consumes time as well.

"The sunflower oil from Ukraine costs $1,380 per metric tone whereas the oil in Argentina is priced at $1,395. It will take an additional two weeks to import the oil from Argentina compared to the supply period from Ukraine," the oil company functionary said.