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Adani Wilmar shares surge as Russia declares war on Ukraine, threatening India’s sunflower oil imports

Adani Wilmar shares surge as Russia declares war on Ukraine, threatening India’s sunflower oil imports
Stock Market2 min read
  • Shares of Adani Wilmar, the makers of the popular Fortune brand of edible oils, surged immediately after Russia announced the invasion of Ukraine.
  • Ukraine is the biggest exporter of sunflower oil to India, accounting for 70% of India’s imports.
  • Russia is the next significant contributor, accounting for 20% of India’s sunflower oil imports.
Adani Wilmar shares surged over 4% as Russia declared a war on Ukraine, which could further worsen sunflower oil imports from Ukraine to India. If the Ukraine crisis does not simmer down soon, this could result in an immediate increase in sunflower oil prices in India as the war chokes supplies.

Shares of Adani Wilmar hit a high of over 4% in the first hour of trade today. As of 10:05 a.m., its shares were trading at ₹351, up by nearly 1.8% over the previous closing price.


Ukraine alone contributes to 70% of India’s total sunflower oil imports, with Russia taking up another 20%. Reports suggest that India has not received any sunflower oil shipments from Ukraine in February so far.

The usual shipment from Ukraine in the February-March period is between 1.5 to 2 million tonnes of sunflower seeds and if the ongoing conflict continues for two or three weeks, it will put pressure on the Indian market.

"India imports about two lakh tonne per month of sunflower seed oil and at times it goes up to three lakh tonnes per month. India is dependent on edible oil imports to the tune of about 60%. Any global development will have an impact," Sudhakar Desai, President, Indian Vegetable Oil Producers' Association told IANS.

SEE ALSO:

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