The country woke up today with probably an awestruck expression reading in the papers about the lifetime high prices of fuel. Delhi, where the fuel prices are comparatively lower hit the ever-highest rate of Petrol at Rs 76.24 per liter and diesel, not staying behind at Rs. 67.57. In other parts of the country this precious liquid was sold for Rs 84.07 per litre in Mumbai, Rs 79.13 in Chennai and Rs 78.91in Kolkata.
This price broke all-time records, which previously was set to Rs 76.06 in September 2013. After the crude oil price rise in 2013, OPEC countries, Organization of the Petroleum Exporting Countries which is an intergovernmental organization of 14 nations started to contribute to the oil economy which led to huge deposits and stocks. This huge stocks led the prices to fall down in the consecutive years. To fight this situation, OPEC countries were cautious enough to put sanctions on the oil production, which brought the prices in control and the results are repercussions of the decision taken then.
One can refer, that Oil prices dominate the whole of the economy in some or another manner. Agri-industry, thus does not go unnoticed, there is a connection between prices of crude oil and agricultural commodities. The oil prices decide the cost of agri commodities since the oil is going to be a participant in deciding the prices of the commodities for the end user. The farm machines need oil to be driven and also transportation cost would manipulate the prices of the goods and products for the customer sitting miles away from the source of production. Vijay Sardana, Head of Food Security & Agribusiness-Policy & Program, UPL Ltd. mentions," About 10% share goes to the energy resources which decides the prices of any produce that is there is in the market for sale. "
Apart from the prices of the agro- commodities , there is one another thing which brings a lot of anticipation in the agri-industry. Amidst the shooting prices of crude oil the search for a better and eco friendly alternative like bio fuel gets noticed. A lot of research work is already under process for appraising the contribution of bio fuels in the economy. The high prices of crude oil could be looked at as an stimulant for the same. Also, there are researchers who also are not in favor of using the eatables like corn , wheat, sugarcane etc as biofuel and but emphasises the use of Agri waste as a source of fuel. Using Agri-waste as a source of energy, would solve two of the most
Expensive crude oil leads to the search for alternative energy sources. This is what happened in the last few years. Costlier crude led to people looking for alternatives such as ethanol (mainly produced from corn or sugar) and bio-diesel (from rapeseed oil and palm oil).
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