new Delhi. The inflation of edible oil is becoming uncontrollable. Prices of all edible oils are at record highs and prices are not expected to soften. The rise in the price of edible oil is due to the supply being less than the demand for oil and oilseeds in the global market. India imports about two-thirds of its edible oil needs and oil prices are constantly skyrocketing due to imports being expensive.
Crude palm oil (CPO) January futures contract on Multi Commodity Exchange (MCX) on Tuesday rose to Rs 941 per 10 kg which is close to the record level. On November 19 last month, the CPO price on MCX had risen to Rs 948.8 per 10 kg.
The wholesale price of mustard oil, crude ghani, was Rs 1173 per 10 kg in Jaipur on Monday, the wholesale price of soy oil at Kandla Port was Rs 1115 per 10 kg, RBD was Rs 1010, 10 kg, sunflower oil was Rs 1290 per 10 kg. Experts say that soybean and RBD are at the highest level, which is also affecting other edible oils.
Davish Jain, chairman of the Soybean Processors Association of India (SOPA), said the edible oil price in the country is seeing a rise due to the international market boom. He said that due to the weather not being favorable, the production of all the oilseeds has decreased this time around the world, due to which the supply is less than the demand. Therefore edible oil prices are at a high level.
Jain said that India imports about 65 per cent of the edible oil requirement, hence the rise in the price of oil-oilseeds in the foreign market has led to an increase in the price of oil in the domestic market. However, he said that after two months, a new crop of South American countries is going to come and if the crop is good, then the price of oil may come down slightly.
India imports soy oil from Argentina and experts say that sowing has been delayed due to the hot weather in Argentina. Salil Jain of Mumbai, an edible oil market expert, said that sowing has been delayed due to hot weather in Argentina and also due to hot weather in Brazil may affect production. He said that due to the strike in Argentina and the surge in KLC, there was a tremendous rise in soybean on the seabot last week. In Argentina, the price of soya oil rose by $ 100 per ton in the last 15 days due to the crushing stopped due to the workers’ strike. Soybean prices in the international market are at a high level after 2014.
Salil Jain said that the production of palm has been affected this year due to the absence of foreign laborers due to Kovid in Malaysia.
Davish Jain said that the production of soyabean during the kharif season in the country was also not up to expectations and the sowing of mustard, the main oilseed crop in the Rabi season, has not increased much.
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