After the arrival of Covid-19 pandemic in India, the edible Oil prices have increased by up to 120% in a span of just one year. And, no one has the exact and definite clue, not even the Government as to why the oil prices are going up. And, there are chances that the prices may go up further which will badly contribute to the rising inflation.
The Traders’ Association has advised the government to lift import curbs. The government is fraught and seeking further steps like increasing imports from other countries to contain the prices. There are various reasons the commerce ministry has identified behind this increment.
why edible oil prices are going up
The price of Mustard Oil which was being sold in the market at the MRP of Rs 115 until June 2020 has increased to over Rs 200. The fall in domestic oilseeds production is the prime cause being attributed to the rise of Mustard Oil.
While the price of sunflower Oil has increased to Rs 220 from Rs 130 per litre. 90% of India’s Sunflower Oil is imported from Ukraine and Russia but the past year brought the drought like conditions there which contributed to the global rise in prices.
Soyabean Oil, whose import in India stands at 85% in comparison to the demand, has risen from Rs 110 to Rs 180 per litre. Soyabean prices have went up due to dry weather in Argentina which exports most of its oil to India.
|Edible Oils||Price in June 2020||Price in 2021|
As per ICRA, Palm Oil consumption in India is at 40% of its total consumption, requirement of which is met from Malaysia and Indonesia. The supply has fallen in these countries due to shortage in labour and workforce.
The same is the story with oils such Ricebran and Groundnut Oil. Some countries have started using increased percentage of oil edible oils in making Bio fuels.
But the experts say that in next 6-8 months the prices, the prices may decrease if the govt. takes right steps at the present moment. This will be quite a relief for the common man whose savings are drying up in the Cpvid-19 era.