Palm oil supply to TNCSC hit by Russia-Ukraine war, HC told

CHENNAI: The edible oil supplying firms informed the Madras High Court that they were not in a position to supply the quantity of palm oil sought by the TN Civil Supplies Corporation (TNCSC) because of the cascading effect of the Russia-Ukraine war.

On January 6, 2021, Richi Soya Industries won the TNCSC tender to supply 90,00,000 one litre pouches of oil at Rs 120.25 per litre.

Starshine Logistics, too, won the contract to supply 65,00,000 one litre pouches at the same price. The firms supplied 44,19,910 and 32,50,000 pouches respectively to date.

On March 3, these Chennai-based companies received an order from the TNCSC over email, asking them to supply 38,75,000 one litre pouches of RBD Palmolein oil at Rs 120.25 per litre within May 3.

However, the Russian invasion of Ukraine has sent up the price of all edible oils, due to which they were not able to meet the additional quantity within the stipulated date, they submitted before Justice GR Swaminathan, seeking a direction to quash the TNCSC order.

The war between Russia and Ukraine, the two major edible oil suppliers from whom India procured 2.83 lakh MT and 1.2 lakh MT respectively, hit the supply, they said.

“Currently, Malaysia is the only supplier and due to the demand, the price of the one-litre pouch rose to Rs 165 in March,” they informed the court, adding they could not supply the required quantity due to this.

Recording the submissions, the judge reserved the orders without mentioning any date.