15 percent rise in the price of edible oils within a month

12-Jun-2024 04:36 PM

Kolkata. During the last one month, the price of edible oils has increased by up to 15 percent, which has increased the concern of the government and food inflation.

Major edible oil companies say that the price of soybean oil has increased because its supply from Argentina and Brazil is getting disrupted and the price of mustard oil has increased because government agencies like NAFED and HAFED have purchased mustard in huge quantities from farmers at the minimum support price (MSP).

Looking at the current scenario, mustard producers have started hesitating to land their goods in major markets because they expect some more increase in its price in the future. It is worth noting that as soon as the price of mustard reaches above the MSP, its government purchase stops.

This time the MSP of mustard has been fixed at Rs 5650 per quintal, whereas the price has reached the level set by the wholesale market rate.

The president of an important organization- Indian Vegetable Oil Producers Association (IVAPA) says that the possibility of a sharp rise in the prices of edible oil cannot be ruled out but it is certain that the market will remain strong for some time.

The workers' strike in Argentina is affecting the crushing of soybean and the production and export of soy oil is getting affected.

On the other hand, due to torrential rains and floods in Brazil, the soybean crop in the far southern state of Rio Grande do Sul has suffered a lot and its production has decreased by 27.10 lakh tonnes.

In April, about 40 thousand tonnes of soy oil was coming on a ship from Argentina but in May only 30-32 thousand tonnes came. As a result, its price has increased by 3-4 rupees per kg in the domestic retail market.