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By Malvika Gurung
Investing.com — Shares of the edible oil major Adani (NS:) Wilmar (NS:) surged 10% in an upbeat market on Friday and ended at Rs 366.1 apiece.
As Russia declared war on Ukraine, fears looming around sunflower oil imports from the two countries escalated.
Sunflower oil imports from Ukraine make up almost two-thirds of India’s sunflower oil imports, contributing 70%, while 20% is imported from Russia.
The aggravating Russia-Ukraine tensions could choke Ukraine’s supplies amid war and lead to a shortage of sunflower oil in India.
India imports 1.5-2 million tonnes of sunflower seeds from Ukraine in the Feb-Mar period. However, it has not received any shipments from Ukraine in February yet, state media reports.
If the war conditions continue to escalate for even 2-3 more weeks, the sunflower oil supply in India will face pressure. As a result, the Fortune oil producer’s shares zoomed 10%.
About 3.8 lakh tonnes of sunflower oil shipments from the Black sea region to India are stuck at ports. Ports have suspended operations due to Russia’s invasion, stated Reuters.
About 60% of the world’s sunflower oil output comes from the Black Sea region.
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