Prices Of Edible Oil:
Edible oil prices are likely to reduce by December as international commodity futures show a declining trend and the production of domestic oilseed crops.
- Last year, the retail prices of six edible oils — groundnut, mustard, vanaspati, soya, sunflower, and palm oil had risen up to 48%.
- This was due to
- Surge in global prices, and lower domestic production of soybean which is India’s largest oilseed crop.
- Excessive buying of edible oil by China.
- Many major oil producers are aggressively pursuing biofuel policies and diverting their edible oil crops for that purpose.
- Governmental taxes and duties also make up a major chunk of the retail price of edible oils in India.
- India is the world’s biggest vegetable oil importer.
- India imports about 60% of its edible oil needs, leaving the country’s retail prices vulnerable to international pressures.
- It imports palm oil from Indonesia and Malaysia, soyoil from Brazil and Argentina, and sunflower oil, mainly from Russia and Ukraine.