Friday, 26 March 2021

Prices of edible oils are up by 80 percent?

edible oil

This time Holi getting expensive not due to high alert or color is expensive because the prices of edible oils have increased. In the domestic market, the prices of edible oils are up by 80 percent compared to last year. The reason for their price increase is the huge boom in the international market. Due to the international boom, the pressure of new arrivals of mustard in the domestic market is also not being built on the prices of domestic edible oils. Importers are avoiding large-scale import of edible oils at higher prices, so imports of edible oils fell by 27 per cent to 7.96 lakh tonnes in February. Imports declined by 3.7 per cent in the November-February period of the current oil year.

During the last one year, the price of RBD palm oil in the international market has increased from $ 590 to $ 1,100, crude palm oil price has increased from $ 580 to $ 1120 per ton. In the domestic market, imported RBD Palmolive is up 70 per cent at Rs 120-125 and crude palm oil is up 80 per cent at Rs 115 to Rs 117 per kg. The rise in imported edible oils has also affected the prices of domestic edible oils. In the last one year, the price of mustard oil in domestic edible oils has increased from Rs 85-90 to Rs 120-125, refined soya oil is being sold from Rs 80-85 to Rs 125-130 per kg. During this period, prices of groundnut oil have risen by about 30 per cent to Rs 155–160 and sunflower oil has more than doubled to Rs 185–190 per kg.

Lakshmichand Aggarwal, president of the Central Organization for Oil Industry and Trade (Cooit), says that India is dependent on imports in the case of edible oils. In such a situation, the price of edible oils doubled in the international market to double, has had an impact on the prices of edible oils in the domestic market. The rise in the prices of edible oils in the international market is mainly due to the weakening of crop in main palm producing countries Malaysia and Indonesia.

Logic behind this?

Soybean is not being sown properly in the US due to the adverse weather with the palm crop becoming weak. Due to this, the rise in edible oils is also gaining momentum. Mustard oil is not getting cheaper despite the increase in mustard yields due to the perception of a boom in edible oils. According to traders, there is no possibility of major fall in the prices of edible oils going forward. However, at the higher level, prices may be slightly lower.

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