Due to the effects of the Corona epidemic, the economy was coming back on track and by then a war had broken out between Ukraine and Russia. This has not only worsened the system of Ukraine, but other countries of the world have also been affected. In the past two weeks, many countries have severed their trade ties with Russia. Right now America has also imposed sanctions on Russian oil, due to which many countries are going to be affected. Let us know what will be the effect of the war between Russia and Ukraine on India.
Despite sanctions, India has maintained a delicate diplomatic balance between Russia and the West, but the risk of economic fallout remains. India’s edible oil, fuel to Indian industries have been affected by the war.
fuel price
World Bank chief David Malpass has called Russia’s attack on Ukraine an “economic catastrophe” that will have more to do with global markets. He said the economic impact of the war is likely to drive up oil and gas prices. The US has imposed sanctions on Russian oil and gas. Due to which Brent crude stood at $ 130.8 per barrel on Wednesday.
Prices may increase here
At the same time, the prices of petrol and other fuels have been stable in the Indian markets since November. With elections in Uttar Pradesh, Uttarakhand, Manipur, Goa and Punjab ending and global crude oil prices rising, companies may increase rates to make up for losses and bring prices at par with international standards.
Price may increase by Rs 15-20
According to The Print, the Indian crude oil price is about 45 percent higher than in November, that is, if oil is taken at $ 115 per barrel, then the fuel prices are set to increase. Fuel prices may increase by at least Rs 15-20 per liter.
effect on edible oil
According to a Reuters report, Indians are increasingly buying edible oil, as it may not be lacking due to the war between Russia and Ukraine. India imports more than 90 percent of its sunflower oil from Russia and Ukraine, although sunflower oil accounts for only about 14 percent of the total edible oil imports.
According to a report in The Times of India, India imports about 2.5 million tonnes of sunflower oil, of which 70 per cent comes from Ukraine while 20 per cent is supplied by Russia.
Edible oil will increase
In such a situation, the import of sunflower oil will be affected by this war by 90 percent. Due to which the price of palm oil coming from other countries can also increase. However, in the meantime Indian farmers cultivating mustard can benefit.
impact on pharma
Talking about a Reuters report, the Indian Drug Manufacturers Association (IDMA) has said that due to the war, the prices of raw materials obtained from benzene or other petroleum products will increase. However, according to officials of Indian pharma companies Torrent Pharmaceuticals and Zydus Lifesciences, there will be less impact from the Ukraine war.
According to the report, between April and December last year, pharmaceuticals accounted for 30 percent of India’s total exports to Ukraine, which was $ 173.3 million. Russia, on the other hand, bought pharma products worth $386 million in the same period.
Sitharaman said- oil price may climb
In a statement given in Bengaluru on Wednesday, it has been said that India is a major center for the trade of crude oil in Asia. In such a situation, due to the war between Russia-Ukraine, prices may go up. But its possibilities are being explored. He said that India is looking at higher oil prices till a solution is found.