Consumers find relief from boiling oil prices in 2023 even after CPI rises
According to data by Bizom, prices of edible oils ranged from a fall of 13.3 per cent to 30.2 per cent in November this year compared to last year
27/12/2023 (Business Standard) - As global prices of edible oil saw a steep correction in 2023 providing relief to consumers, prices were on the boil last year being one of the main drivers of food inflation.
According to data by Bizom, prices of edible oils fell between 13.3 per cent and 30.2 per cent in November compared to the year-ago period. “In July and August this year, as prices of edible oils cooled globally, we saw an increase in imports in India due to the lower import duty of 5.5 per cent on crude palm oil, crude soybean oil, and crude sunflower oil. This provided a cushion for both El Niño and a possible price hedge for future rise in prices,” Akshay D’Souza, chief of growth and insights at Bizom, told Business Standard.
“As a result, we have had sufficient stocks in the Indian market that are getting consumed now over a longer period of time. The sharpest drop in prices is seen for sunflower oil, favorite for home consumption.”
The retail intelligence firm expects edible oil prices to remain in control over the next 3-6 months driven by global supply remaining steady and domestic interventions that could help keep prices in check. Among essentials, the price of rice still remains higher in November compared to last year and milk was higher by 2.1 per cent.