Agri Business

Palm oil prices increase by more than 82% in 5 years

Mangaluru | Updated on August 07, 2021

Soyabean oil was the next topper with retail prices rising by 70%

A person who bought RBD palmolein at ₹68.6 a kg in 2016 is now paying 81.77 per cent more for it. In fact, RBD palmolein is one of the edible oils that saw a steep increase in the prices in the last five years.

The price of RBD palmolein went up by 83.20 per cent in wholesale markets, respectively, between 2016 and 2021 (up to July 29).

The next major increase was seen in soyabean oil. The price of a kg of soyabean oil went up by 70.21 per cent and 73.65 per cent in retail and wholesale markets, respectively, during the period between 2016 and 2021.

Sunflower oil prices increased by 68.87 per cent and 69.68 per cent, in retail and wholesale markets, respectively, during the period under review.

Groundnut oil saw minimum increase in the prices compared to other edible oils in the market. The prices went up by 30.91 per cent and 29.74 per cent in retail and wholesale markets, respectively, during the period between 2016 and 2021.

Reasons for the spike

Replying to a query in the Rajya Sabha on Friday, Sadhvi Niranjan Jyoti, Union Minister of State for Rural Development, and Consumer Affairs, Food and Public Distribution, said prices of edible oils were interalia affected by mismatch in demand and supply, increase in the international prices of edible oils, shortfall in domestic production owing to adverse weather conditions, seasonality, increased transportation costs, supply chain constraints etc.

She said that due to improvement in the living standards of the people, the demand for edible oils has been increasing. The per capita consumption of edible oils has increased from 19.5 kg per annum in 2018-19 to 19.7 kg in 2019-20.

To ensure the availability of edible oils in the country, the government has reduced the standard rate of duty on crude palm oil by 5 per cent from June 30 and it will be in effect up to September 30. The government has also amended the import policy of refined palm oils from ‘restricted’ to ‘free’ for a period of up to December 31, she said.

However, the increase in price was the maximum in the case of sunflower oil in 2021 when compared to 2020. The retail and wholesale price of sunflower oil went up by 40.57 per cent and 42.45, respectively, till July 29 of 2021 when compared to the whole of 2020. It was followed by soyabean (36.81 per cent in retail, and 37.85 per cent in wholesale) and RBD palmolein (35.30 per cent in retail, and 35.94 per cent in wholesale markets).

Groundnut oil costs more

Groundnut oil costs more than all other edible oils available in the market. The yearly retail price of groundnut oil stood at ₹171.5 a kg in retail and ₹160.5 a kg in wholesale market in 2021 (till July 29). It was followed by sunflower oil at ₹160.6 a kg in retail and ₹151.7 a kg in wholesale market in 2021.

To another query, Ashwini Kumar Choubey, Union Minister of State for Consumer Affairs, Food and Public Distribution, gave details on the monthly average retail prices of 22 essential food commodities for January, February, March, April, May, June and July in 2015 and 2021.

According to his reply, the monthly price of tomato saw a decline in the prices ranging from 6.6 per cent to 17 per cent for the above-mentioned months in 2021 when compared to 2015.

Published on August 06, 2021

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