Increase in the price of consumer products due to the rise in the price of CPO

28-Oct-2024 12:45 PM

Mumbai. Due to the sharp rise in the price of crude palm oil (CPO) along with other edible oils in the international market and the increase in the customs duty by 20 percent, its import in India is becoming very expensive.

This has not only increased the price of refined palm oil and vegetable (ghee) but the price of many other consumer products made from CPO is also increasing continuously.

The price of refined palm oil or RBD palmolein has increased a lot and now FMCG companies are increasing the price of whole etc. in which CPO is used.

CPO is used as a major component or ingredient (raw material) in the manufacture of some consumer products.

During the last three months, the price of CPO has increased by more than 45 percent. Hindustan Unilever Company is one of its major users.

The company says that due to the very high price of CPO, the cost of products in the skin cleansing category has increased significantly and hence the company is being forced to increase its prices.

The price of products in this category had remained stable for a long time but now it has become necessary to increase it.

Compared to last year, now the price of CPO is running 10 percent and the price of tea is 25 percent higher. Another leading company - Godrej is also under pressure to increase the price of its products.

According to the available data, the price of crude palm oil was around Rs 854 per 10 kg on 28 June 2024, which jumped to a high of Rs 1240 per 10 kg by 25 October.

Companies say that the increase in customs duty has worsened the equation. But this is a short-term event and efforts will be made to recover the margin by increasing the prices of the products in a fair manner. Later the price of these products will stabilize.