Edible oil prices may not rise during festive season due to good supply
The prices of edible oils, however, may increase from December through April-May next year due to the impact of El Nino in oil-producing countries
05/09/2023 (Business Standard) - Prices of edible oils may not rise during the upcoming festive season as international supply is good, said executives of leading fast-moving consumer goods (FMCG) companies.
However, prices of edible oils may increase from December through April-May next year due to the impact of El Nino in oil-producing countries, according to a report in The Economic Times (ET).
Executives of FMCG companies said that rice production in the country might fall as many eastern states that produce non-basmati rice have not received good rainfall, which may cause damage to the standing paddy crops.
B V Mehta, executive director, Solvent Extractors Association, said, "Monsoon is critical for the soya bean and groundnut crop. It should rain well in the next 10 days, otherwise the yield will be severely affected."
According to the India Meteorological Department (IMD), 287 districts in the country were deficient in rainfall between June 1 and August 4, according to the ET report.
Angshu Mallick, managing director of Adani Wilmar, said, "India is sitting on a good volume of imported oil and prices are unlikely to go up soon. But definitely, the scanty monsoon will have an impact on the soya bean crop... That may leave an impact on consumption."
Last month, Minister of State for Consumer Affairs, Food and Public Distribution Sadhvi Niranjan Jyoti had informed that prices of refined sunflower oil, refined soybean oil, and RBD palmolien had declined significantly over the past year.
She said that refined sunflower oil retail prices decreased by 29.04 per cent over the past year. Similarly, refined soybean oil prices declined 18.98 per cent, while RBD palmolien prices dropped 25.43 per cent during the same period.