Russia Ukraine Conflict: Fearing Supply Crunch, Indians Stock Up Edible Oil, Fuel

India imports over 90 per cent of its sunflower oil from Russia and Ukraine although it accounts for about 14 per cent of the total edible oil imports.

Russia Ukraine Conflict: Fearing Supply Crunch, Indians Stock Up Edible Oil, Fuel (File Image)

New Delhi: Fearing a supply crunch in edible oil amid the ongoing Russian military offensive in Ukraine, Indians are stocking up on the kitchen staple, while a consolidation in global crude prices might prompt the central government to raise fuel prices as the assembly elections conclude in the key states.

A rise of more than 20 per cent in the edible oil prices in less than a month and the fake viral messages on social media regarding its shortage have triggered panic buying in India, which takes care of over two-thirds of its cooking oil demand through imports.

"On WhatsApp, I read messages that there could be cooking oil shortages because of the war. So, I rushed to buy," news agency Reuters quoted Mumbai-based homemaker Rekhana Khan as saying. Fearing a crunch, Khan has bought 10 litres of edible oil, that is double her usual monthly purchase of five litres.

Notably, India imports over 90 per cent of its sunflower oil from Russia and Ukraine although it accounts for about 14 per cent of the total edible oil imports.

According to BV Mehta, executive director of the Mumbai-based Solvent Extractors' Association of India, supplies of other edible oils, such as palm, soy, rapeseed oil and ground nut, are sufficient and there is no need to panic.

Meanwhile, the state-run oil companies that control the domestic oil market have not hiked the prices since November 4 amid the assembly elections in several key states, including India’s most populous state Uttar Pradesh.

However, with the conclusion of voting on Monday, consumers now fear that the government will increase the oil prices as early as Tuesday.

Swapnil Phadtare, a farmer from Maharashtra, said that he was stocking up diesel as the local media reports said there could be a hike of ₹15-20 per-litre in fuel prices after the polls.

"Harvesting of winter-sown crops will start shortly. We need lots of diesel during this period. To save money I decided to buy like other farmers in my village," Reuters quoted Phadtare as saying.

On the other hand, oil prices rose to their highest since 2008 on Monday as the US and European allies considered imposing a ban on the Russian oil import, and as delays in the potential return of Iranian crude to global markets aggravated the supply fears.