As there is no sign of the ceasefire of the Russia-Ukraine war, the price of Crude Palm Oil (CPO) has reached an all-time high in the country. This has started showing in the retail price that has seen around 20 to 25 per cent rise in last fortnight.
Traders feel that if the import CPO is not increased immediately, there will be a shortage of edible oil in the country.
Shankar Thakkar, president of All India Edible Oil Merchant Federation (AIEOMF) says the import price of CPO has reached $1,910 for each ton which is an all-time high. “The March import price is around 1,910 dollars for every ton CPO and the new order will be more,” said Thakkar.
“At present, there is a stock that is sufficient for the next one month. However, there is a need to increase imports to maintain the stocks level,” said Thakkar. He added that of the total edible oil consumption, around 50 per cent are met by Palm Oil.
“All the street vendors to fried packed snacks are cooked in Palm Oil as it maintains the taste and does not affect the smell,” said Thakkar. He added that further price rise in Palm Oil will impact all these industries severely.
The price of edible oil has already been boiling for the last year and the Russian invasion has worsened the situation further. Even Grain, Rice & Oilseeds, Merchants’ Association (GROMA) admitted that the rise in CPO has impacted the retail price of edible oil.
Bhimji Bhanushali, secretary of GROMA, said that the war has pushed CPO prices and this has further impacted the overall import cost and retail price of essential commodities. India imports CPO majorly from Indonesia and refined palm oil from Malaysia. The central government has already requested Indonesia to increase the export of the CPO.
Traders at APMC Vashi said that there is a price change every day. “With the dip in supply of sunflower oil, the demand for palm oil has increased,” said a trader from APMC.
Meanwhile, there is a substantial rise in the production of mustard seeds and this will help in stabilizing the price of mustard oil in days to come.
“We do not seem much price rise in mustard oil as there is good yield this year,” said a trader.
