1. Commodity News

What is the Reason for Rising Edible Oil Prices in India?

Pritam Kashyap
Pritam Kashyap
oil
Edible Oil

Rising edible oil prices have become a cause of concern for the government as the average prices of all edible oils like groundnut, mustard, vanaspati, soybean, sunflower and palm have increased, with the spike in palm, soybean and sunflower oils by up to 20-30 per cent in the last one year. 

Prices of sunflower oil have risen by 21 per cent i.e. from Rs 1,480 to Rs 1,800 per 15 kg. If we look at this that India currently levies 37.5% and 45% import tax respectively on crude and refined palm oil. Imports of crude soybean oil, crude sunflower oil and rapeseed oil attract 35% import duty. 

Mostly the hike is due to import from other countries and less Production in our nation. Since it is COVID-19 pandemic and lockdown in many nations so import and export have stopped. The country like India which was usually depended on Brazil, Argentina, Russia and Ukraine for import of Sunflower oil due to lockdown it has stopped. The second reason will be a change in government policies like fixing of import policies and taxes on the edible oil. 

Sunflower oil is obtained by pressing the seeds of the Helianthus annuus plant and is mainly composed of linoleic acid, a polyunsaturated fat, and oleic acid, a monounsaturated fat. World-leading producers of sunflower oil are Ukraine, Russia, Argentina, Bulgaria and Turkey. 

Price can be normal when government reduce import taxes, Atmanirbhar start in Agriculture sector like the start of more sunflower oil production in India. In India, oilseeds such as rapeseed, soybean and sunflower are mostly cultivated in rain-fed areas, while farmers with secure irrigation prefer wheat and rice that the government buys from them at a set price for public welfare schemes. 

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