Prices of edible oils expected to remain high in the coming times

25-Oct-2024 07:44 PM

Mumbai. Due to high prices in major exporting countries and 20 percent increase in import duty in India, the domestic market price of edible oils has increased by 10 to 13 rupees per liter in the last one month and the bullish and strong environment is expected to remain in the market in the coming months.

According to official data, during the last one month, the average retail price of soybean oil at the national level increased by 10 rupees from 127 rupees to 137 rupees per liter,

sunflower oil jumped by 13 rupees from 129 rupees to 142 rupees per liter, mustard oil jumped by 13 rupees from 151 rupees to 164 rupees per liter and palm oil increased by 13 rupees from 110 rupees to 123 rupees per liter.

The central government is currently in no mood to withdraw the increase in import duty and it considers this duty increase necessary to increase the domestic production of oilseeds-oil. India remains the largest importer of edible oil in the world and meets 55-60 percent of its total domestic demand and requirement through imports from abroad.

According to the President of Solvent Extractors Association of India (C), after the increase of 20 percentage points in the customs duty rate in India, the price of edible oils in the global market was expected to decrease, but on the contrary, the price increased due to the complexity of supply. This is increasing the import cost.

Trade analysts believe that until the price of edible oils does not decrease in the exporting countries, it is difficult to soften in the domestic market.

The stock of previously imported edible oils has almost ended and now new imported oil is reaching the market.

It is worth mentioning that India mainly imports palm oil from Indonesia, Malaysia and Thailand, sunflower oil from Russia, Romania, Ukraine and Argentina and soybean oil from Argentina, Brazil and some other countries.