Sunflower oil trading restrictions are initiated, the first to suffer from small businesses

After many countries in Europe, which have imposed restrictions on buying consumer-to-market food oil, on the Albanian market the first to suffer supply restrictions are small businessmen. Small food goods businesses contacted by “Monitor” claim that from most stores they cannot buy more than 15 or 30 liters of sunflower oil (1-2 boxes), due to lack of supplies.

We don't supply you more than 30 liters of oil, since they too are short supply. Concern is also high prices, despite the consumer's continuing to buy sunflower oil marks. As for cheaper oil, but it is a new brand that has recently been released on the market, there is no demand”, claims Qamil Ajazi chairman of a food supply in the Fresk area.

The decline in the production of sunflower seeds in Europe and the price increase began as early as 2020, as the start of the Russia-Ukraine war deepened even more lack of production and expensive the price. Early in March, sunflower oil was sold to 340 lek/liter from 260 in February. In a February report, the price for May 2022 is 46.5% more expensive.

Currently, the price of selling sunflower oil, set by the Transparency Board, is 381 lek per consumer and $36 for consumer sales. For importers the profit margin set by the board is $35 per litre and for retail traders, 6m per litre.

In addition to lack of supplies, small businesses raise concern that the margin of profit left to the majority points is 50% lower than the profit margin approved by the board. “Today I've been supplied with 15 liters (1 liters) of oil “Floriol” at a price of 377 large and 15 litres of oil “Olim” at the price of $370 per litre. We can't supply more than two boxes. The price of sale for both types of oil will be $380. We are being supplied with this product just so that customers don't miss it, because even the cost of the supply cannot be covered. Major cars for weeks no longer come to deliver our goods to food stores”, states another small business director in Tirana.

Importers earlier stated that in this crisis situation, the price of sunflower oil is no longer an issue, but the lack of finding the product. The company's general director “Ebraron” who imports Hungarian ambalized oil “Floriol” Teddy Maraj said earlier about “Monitor” that from June and throughout the summer season on the market there will be a lack of product. Maraj stressed that the company cannot create more than 30 days of reserves, as supplies are no longer available in Hungary.

Lack of supplies was also warned by another importer. We're going around a situation that's threatened with no oil on the market starting with summer season. Already due to bombings in the eastern part of Ukraine, operators have cut off supplies from this country. The supplies provided by Ukraine last on the market for a month. In Bulgaria and Serbia, the price of oil follows to be high in the value of 420 to 430 litres of VAT. In Europe due to the decline of the offer, the amount of import is limited”, the oil dealer previously underlined. The situation has been heavy for sunflower oil, as 80% of world consumption is covered by Ukraine and Russia. In these countries in March, the sunflower seed was failed. /Monitor