Mumbai: Ahead of the Diwali festival, the prices of edible oil saw a sharp rise due to the increase in crude oil prices in the last fortnight. The announcement of a reduction in the production of petroleum crude by OPEC countrieshas pushed the crude oil price and this has impacted the import cost of edible oil, especially palm oil prices.
According to the All India Edible Oil Traders Federation (AIEOTF), in the last week, palm oil prices increased by Rs10-12 per liter, soybeanoil by Rs14-Rs16, and sunflower oil prices by Rs18- Rs 20 per liter in the retail.
India imports 70% oil
India imports around 70% of its total requirements, and thus any global development affects the import price. Despite favourable conditions due to the increased production of edible oil in the exporting countries and good rains across the country for the past 3 months, the hope of getting edible oil during the festival at a low price has been dented.
Shankar Thakkar, National President of AIEOTF and General Secretary of Confederation of All India Traders (CAIT), Maharashtra Pradesh said that the announcement of a reduction in the production of petroleum crude by OPEC countries and depreciation of the rupee against the dollar led to a sudden increase in the prices of edible oils,” said Thakkar.
As fesitval approaches demand increases
Due to the good production of palm oil, import prices were falling, and Indian importers reduced purchases in view of falling prices. Traders also kept the stock low so that the losses are less. Now the demand has increased as the festival approaches.
However, the sudden rise in crude oil prices increased the cost of import. Secretary General of AIEOTF, Tarun Jain said that the reduction in the production of petroleum crude oil by OPEC countries has led to an increase in crude oil prices, which has a direct effect on the prices of palm oil. On the other hand, the Russia-Ukraine war is disrupting the supply of sunflower oil and the prices have also increased.