Black Sea attacks hit yellow peas, sunflower oil supplies to India

Pune: Russia's exports of yellow peas to India have come to a halt in the past two months following attacks on its ports in the Black Sea amid the protracted war with Ukraine, lifting prices of the pulses by more than 10%.

Sunflower oil shipments have also been affected, which is expected to make it pricier than other cooking oils, said importers.

"Russia is the world's largest producer of yellow peas," said Bimal Kothari, president, Indian Pulses and Grains Association (IPGA). "However, we have not received any shipments from them since the last two months."

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With Russian shipments getting squeezed, Canada, the second-largest producer of yellow peas, has raised prices. In India, wholesale prices of yellow peas have risen to ₹46 per kg from about ₹40 in the last two months.

Russia has shifted its grain export activity to the northern Baltic Sea ports. However, importers said the country is giving priority to wheat shipments, leaving no space for yellow pea exports.

"We have requested the Russian authorities to allow some amount of cargo from their northern ports," said Satish Upadhay, secretary, IPGA.

Kothari said despite India's 30% import duty, drop in import volume and higher international yellow pea prices, domestic prices have increased moderately.

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"Yellow peas still remain the cheapest pulse available in the country," he said. "If the import of yellow peas from Russia gets back to normal, we can expect prices to reduce by ₹4-5/kg." Supply of sunflower oil from Ukraine and Russia is also expected to decline due to the shipping disruptions.

"The logistics from the Black Sea ports is haywire," said Sandeep Bajoria, president, International Sunflower Oil Association. "A shipment of 20,000 tonnes heading towards India was cancelled. The region's sunflower oil exports have now reduced to about 50% of the normal." He said sunflower prices are expected to rise in the coming weeks due to extended shipping schedules.