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Ukraine crisis: Amid worries of crude oil price hike, Punjab farmers stock up on fuel
Russia and Ukraine are the key global suppliers of crude oil, with buyers in Asia and the Middle East. Russia is the third-largest oil producer and second-largest oil exporter. Diesel consumption by farmers increases significantly during the harvest season, which usually starts from the second week of April in Punjab.
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With the Russia-Ukraine conflict triggering worries of crude oil price surge, farmers in Punjab are stocking up on fuel for the upcoming wheat harvest season.
Long queues of tractors, with fuel storage tanks, were seen at filling stations in rural areas of the southern Malwa region on Saturday.
Russia and Ukraine are the key global suppliers of crude oil, with buyers in Asia and the Middle East. Russia is the third-largest oil producer and second-largest oil exporter. India is the world’s third-largest oil consumer and depends on imports to meet 85% of its needs. The imported oil is converted into products such as petrol, diesel, and LPG. Changes in petrol and diesel rates in India are directly influenced by the price of crude oil in the international market.
Diesel consumption by farmers increases significantly during the harvest season, which usually starts from the second week of April in Punjab.
Kulwinder Sandhu, who owns a petrol pump in Faridkot, said there is a sudden increase in demand for diesel among farmers. “Our sale of diesel increased by around five times in a day, and the pump has gone dry. We are now waiting for a refill. Farmers are worried that diesel prices may see a jump due to the Russia-Ukraine situation. So, they are stocking up for harvest season,” he said.
Mandeep Singh, a farmer from Golewala village in Faridkot who was waiting for his turn at a filling station, said, “The harvest season is just a month away. We require a large amount of diesel during this time. So, we are purchasing diesel early and storing it before the government increases the rates. Otherwise, it will increase our expenditure and agriculture is already a low-profit sector.”
Kuldeep Singh of Talwandi Sabo in Bathinda said that he grows wheat on 50 acres.
“Hundreds of litters of diesel will be consumed by combine harvesters and tractors during the season. Even a small hike in prices will turn into significant losses for us. So, I have started storing diesel to save as much as I can,” he said.
Project director, Agriculture Technology Management Agency (ATMA), Faridkot, Amandeep Keshav said the increase in fuel prices has a direct impact on the cost of production. This is the reason behind the panic among farmers. “However, until there is an official announcement of a hike, it’s all just speculation,” he added.
