Now, price rise in palm oil, trend likely to continue
Rising palm oil prices will be good news to local farmers who are thinking of palm cultivation
29/12/2022 (Telangana Today), Hyderabad - Prices of palm oil are firming up. The price, which till recently was about Rs 100 a litre, is now at Rs 110. The price has increased about ten per cent or so and the trend is likely to continue for some more time.
“The prices of edible oils have first increased to new highs due to the Covid and the Russia-Ukraine spat. Then they have come down due to the Government intervention. Now, price rise is seen in palm oil. Palm oil is selling around Rs 110 a litre from the earlier 100. The prices of sunflower remained in the same range of Rs 150-160 a litre to the consumers,” said P Chandra Shekara Reddy, Senior Vice President (Sales and Marketing), Freedom Healthy Cooking Oils Sales, said about the industry trends.
According to him, there will be some more appreciation in the palm oil prices. Countries producing palm are in favour of exporting finished products instead of crude. This is resulting in higher prices. On the other hand, rising palm oil prices will be good news to local farmers who are thinking of palm cultivation.
According to data from Solvent Extractors’ Association of India (SEA), import of vegetable oils in November this year, the first month of oil year 2022-23, is at a new record of 15.4 lakh tonne, up 11% from 13.9 lakh tonne in October. In November last year, vegetable oil import was 11.7 lakh tonne.
With respect to crude palm oil (CPO), the import in November was 9.31 lakh tonne, the highest ever in a single month. In October, 7.56 lakh tonne CPO was imported. Import of refined, bleached, and deodorised palm oil (RBD ) is rising fast. About 2.02 lakh tonne RBD was imported in November compared to 1.27 lakh tonne in the previous month.
The import of crude soybean oil reduced to 2.29 lakh tonne last month from 3.35 lakh tonne the previous month. Sunflower oil import increased to 1.57 lakh tonne in November compared to 1.44 lakh tonne in October 2022.
According to SEA Executive Director Dr BV Mehta, the current import duty difference of 7.5% between CPO (5%) and RBD (12.5%) encourages import of refined palmolien into our country.