Edible Oil Price: Following the increase in edible oil prices during the festive season, consumers have experienced no relief even in November. The retail market has seen soybean oil prices hit Rs 160-170 per liter. The cost of cooking oil rose considerably during the holiday period. In this timeframe, the cost of palm oil experienced a 37 percent increase in October.
Global cost of edible oil is on the rise
Likewise, mustard oil increased in price by 29 percent, soybean oil by 23 percent, sunflower oil by 23 percent, and peanut oil by four percent. It was thought that the costs of cooking oil might decrease following the festivals, but prices remained unchanged in November. A report has cited government sources claiming that it lacks control over the factors causing the rise in edible oil prices. The global cost of edible oil is on the rise. Additionally, the palm oil season in Southeast Asia has been subdued. The government has still not made a decision on reducing the import duty.
The government raised the tariff on imported edible oils to support local farmers. On September 14, the government raised the import tax on crude and refined edible oil to support the cultivation of oilseed crops domestically. The tariff on crude palm, soybean, and soybean oil rose from 5.5% to 27.5%, whereas the tariff on refined oil went up from 13.7% to 35.7%. In October, the government voiced worries about the increasing cost of cooking oil. Subsequently, the impacts of raising import duties were deliberated among different ministries, and strategies to alleviate the burden on consumers were considered. There was an expectation that the introduction of new soybean and peanut harvests in October would cause a drop in oil prices, but this did not occur.
India relies on imports for 58%
India relies on imports for 58% of its edible oil needs. The government is encouraging oilseed farming to ensure a steady supply and safeguard the local market from global effects.