Edible Oil prices have increased drastically. Refined oil, whose price was Rs 140 per litre 15-20 days ago is now being sold for Rs 170-175. Despite of the fact that there is enough stock of edible oil in the market, retailers are not able to procure them. And if they are getting it, then an arbitrary price is being charged in return for it.
According to market experts, Russia and Ukraine are major producers & exporters of sunflower, soya and palm oil. Indian traders are worried that the war between Russia & Ukraine will hit hard as India imports over 80% (25-30 lakh metric tonnes per annum) of its sunflower oil requirement from Russia and Ukraine. The country’s dependence on sunflower oil is around 15 percent of all oils.
Furthermore, due to internal trade limitations in Indonesia, the world's largest producer of palm oil, palm oil imports are becoming more expensive. Soya bean oil, on the other hand, is under pressure due to a lower-than-expected soybean harvest in South America.
According to traders, oil companies have started stocking edible oils for up to 3 months. In such a situation, the reason for the increasing oil prices is Hoarding, Black Marketing, and Profiteering.
At present, there is no shortage of edible oils like palm oil, refined and soybean refined, etc. in the market. In a meeting after the Ukraine-Russia war, the Prime Minister has also said that edible oil is available in sufficient quantity in the country.
Big industrialists hoard oil for black marketing and the small wholesale, retail traders and consumers suffer. Wholesale and retail businessmen are upset due to the non-availability of goods. This is the reason why prices of edible oils are constantly shooting up.
Government and administration should look into this and take action against those responsible for the black marketing of edible oils. - Anand Gupta, Wholesaler.
