Aatmja Kumari(Intern Journalist): Edible oil prices have gone up by 20% to 40% during the last few months. Edible oil prices are not expected to fall before the new year. However, the demand for edible oils is low due to the coronavirus epidemic. The main reason for the rise in prices is the low supply of edible oil.
The government has the option to reduce its import duty to curb the rise in edible oil prices. But, she does not want to be hasty about this, because right now farmers in the country are sowing mustard. Industry people say that in many countries, the government has taken measures to increase liquidity during the corona epidemic. A lot of money has gone into the commodity, which has led to a rise in prices.
Gyanasekhar Thyagarajan, Director of Commodity Research, a commodity futures research, and advisory firm, said, “There is a huge shortage of mustard in the country and prices have gone up by 40% to 50% during the last few months. Prices of other edible oils have also increased by 15%. Has increased by 20%. “
India imports around 70% of its domestic requirement of edible oils. Both the industry and the government are now expecting the increase in mustard prices that farmers will increase mustard cultivation in the Rabi season instead of wheat. However, the central government has tried to rein in inflationary trends by banning exports and facilitating imports. But in the case of edible oils, she is more careful.
Solvent Extractors Association (SEA) President Atul Chaturvedi said, “It has been our experience that whenever India lowers the import duty on edible oil, the prices of palm and soybean oils in exporting countries rise, causing Their farmers get help. “
According to the SEA, the overall import of vegetable oils from November 2019 to September 2020 (11 months) stood at 12,257,834 tonnes as compared to 14,171,462 tonnes during the same period last year. This figure is 13 percent less than the previous year. Experts said edible oil prices have risen due to weather conditions around the world and labor shortages and other disruptions in palm oil-producing countries like Malaysia and Thailand.
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