Finance minister Nirmala Sitharaman said on Monday that India is keenly observing the impact on exports and imports due to ongoing war between Russia and Ukraine.“We are rightly worried about what comes from there but I am more worried about what is going to happen to our exporters who are doing very well, particularly the farm sector, to Ukraine and Russia,” she added. Sitharaman was interacting with the business and industry leaders in Tamil Nadu on Monday.
Finance minister further added that the government is closely monitoring the evolving situation in the Russia-Ukraine region and assessing the impact of the conflict on the country’s trade.
Around 90 per cent of the India’s sunflower oil imports are from Russia and Ukraine. India consumes around 2.5 million tonnes (mt) of sunflower oil annually but it only produces 50,000 tonnes of sunflower oil and imports the rest, according to the data provided by the commerce ministry. Sunflower oil accounts for 14 per cent of all edible oil imports. It is the fourth most consumed edible oil, after palm (8-8.5 mt), soyabean (4.5 mt) and mustard/rapeseed (3 mt). The price of sunflower oil rose from Rs `98 a litre in February 2019 to `Rs 161 February 2022.
“We are already looking at the emergent situation. But I will have to have a complete assessment done through the various ministries concerned and only then will be in a position to comment on it. But you can be assured that we are fairly seized of the matter in its granular form because it is going to have an impact on the essentials such as edible oils which come from Ukraine, sunflower oil and parts of fertilizers and so on,” said the minister. India is also a big importer of phasphatic fertilizers from Russia.
The finance minister was also worried about exports to the Russia and Ukraine too. “We are rightly worried about what comes from there but I am more worried about what is going to happen to our exporters who are doing very well, particularly the farm sector, to Ukraine and Russia,” Sitharaman added.
Russian President Vladimir Putin had last week announced ‘military operations’ over the Ukraine border. To stop aggressive Putin, the Western countries have imposed harsh sanctions. The crude oil price had surged its highest level in eight years.
“India’s development is going to be challenged by the newer challenges emanating in the world. Peace is being threatened and after the Second World War, (a) war of this significance, this impact, on the globe probably is not felt,” Sitharaman said earlier at the annual Asia Economic Dialogue.
“Hopefully, some kind of restoration of peace at the earliest will happen, based on which, recoveries can be sustainable,” she added.
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