Mumbai: Due to the Russia-Ukraine War, the highest inflation has come in petroleum products and edible oils because India is heavily dependent on imports of both types of oils for its domestic needs. While import dependence in crude oil is up to 85%, in edible oils it is up to 65%. That’s why we are reaching new heights with Petrol-Diesel and Cooking Gas (LPG).
Although the prices of edible oils have come down by 5 to 7% due to fall in demand after reaching new highs on Holi, but due to the continuation of the war, it is expected to rise again in April.
Producing countries increased export tax
Oil traders say the war has raised questions about the availability of sunflower oil, leading to an increase in demand for soya and palm oil. Soybean harvests in Brazil and Argentina are weak, and Indonesia and Argentina have tightened oil export regulations. Also Argentina has increased the export tax from 31% to 33%. Similarly, large producer countries of edible oils have increased export taxes in the last one and a half months. Due to which imports have become more expensive. Now the eyes of the whole world are on American soybean and soya oil, due to which there is a big boom in soybean oil in the international market.
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Palm oil reduced by Rs 16
The fall in prices after Holi has led to a fall in the demand. After hitting a record high of Rs 1,640 on Holi in Mumbai, soya oil is now priced at Rs 1,490 per 10 kg. Palm oil too after selling at a record level of Rs 1,630 is now Rs 1470. Soya oil fell by Rs 15 per kg and palm oil by Rs 16 per kg. Whereas sunflower oil has not decreased much. After selling at a historic high of Rs 1,780, it is now priced at Rs 1,700 per 10 kg. These three oils are the biggest imports. Mustard oil also remains strong.
all eyes on the war
The National President of Edible Oil Traders Federation Shankar Thakkar said that as soon as the oil prices started rising after the war broke out last month, customers who had capacity, bought more than they needed and stocked up for a few days. There was a boom till Holi, but after Holi, due to weak demand, prices fell by 5 to 7% and prices have stabilized, but due to less imports, there is a shortage of goods and if the war does not end soon, then Gudi Padwa There may be a boom on Navratri. The central government is constantly trying to control the prices, but due to the lack of supply, it is becoming difficult to control the prices.
Huge drop in sunflower oil imports
The import of sunflower oil in India is estimated to be only 85 thousand tonnes till April, which is about 2 lakh tonnes less than last month. There is no substitute for sunflower oil in the domestic market except groundnut oil. Therefore groundnut oil also has a bullish trend. Mustard oil remains strong.
