Ukraine is also offloading a lot of wheat in the global market, they said, adding this may impact wheat prices in India, which have shot up 10-11% in the past two months.
While wheat prices may cool off, they said, rice prices have increased 15% in the past fortnight as the rabi rice crop in Bihar, Uttar Pradesh, Madhya Pradesh and Odisha has not been satisfactory.
“Prices of sunflower oil are now hovering around ₹110-120 for one litre pouch at the retail end, while soybean oil is at ₹130 per litre,” said Angshu Mallick, managing director, Adani Wilmar. “Ukraine is pushing a lot of sunflower oil into India to offload its stock. We are expecting healthy demand for sunflower oil as prices are on the lower side.”
India annually imports 2-2.5 million tonnes of sunflower oil to meet its domestic demand.
Pradeep Chowdhry, managing director of Gemini Edibles & Fats India, said prices of all oils are on the lower side and, therefore, the demand remains strong. “International supply of all oils is in a comfortable position,” he said.
Mallick said wheat prices have gone up 10% in the past two months. “But if Ukraine starts offloading wheat in the world market, then prices globally will come down. This will have an impact on domestic wheat prices as well,” he said.
Wheat is trading at ₹2,500 per quintal in Delhi. Despite a larger wheat crop as compared to the previous year, wheat arrivals were low during the peak harvest season which fuelled the prices. According to the agriculture ministry’s third advance estimate, wheat production is estimated at a record 112.7 million tonnes, 4.6% higher year-on-year.
Suraj Agarwal, CEO, Tirupati Agritrade, which sells rice under the brand name RiceVilla, said the production of the common variety of non-basmati thick rice has been less during this year’s rabi season. “Prices of this variety have gone up 20% in the last fortnight. This has also put an upward pressure on other varieties of rice, the prices of which have gone up 15%,” he said.