Amid US-Iran War, Are India’s Edible Oil, Fertiliser Imports at Risk?

New Delhi: As the war in the Middle East rages on, India's imports of edible sunflower oil and fertilisers may face significant disruption. There is also a risk to export of agricultural commodities to the Middle East and Europe..

This is because, several reports have pointed out that shipping companies have begun imposing emergency conflict surcharges on cargo, moving in the war ravaged international waters. Reports indicate that the French container giant CMA CGM has been levying $2,000-$4,000 per container, which is in turn, raising the costs for Indian importers.

It should be noted that Qatar, the UAE and Oman collectively add up to for 76% of India's sulphur imports.

As per latest records, India imports around 16 million tonnes of edible oil annually. Among them, sunflower oil accounts for roughly 20%, which is mostly imported from Russia, Ukraine and Argentina. These shipments could face significant delays, if those vessels have to be reroute away from the Red Sea, several experts familiar with the matter pointed out.

Many experts have also indicated that the rising crude oil prices could further aggravate the pressure. The linkages between high energy costs, logistics and global biofuel markets, could further strangulate the import-export buisness. The escalation in the Middle East would send ripple effects through India's crude and edible oil markets.

Data indicates that India ships around 20 per cent of its oilmeal to the Middle East and 15 per cent to Europe. The ongoing conflict may also impose riskes to shipments of oilmeal, and agriculture, horticulture, and floriculture products shipped through this region.

ALSO READ: Natanz Nuclear Facility Struck Amid US-Israel-Iran War, IAEA Warns of Radiation Leak Risk