MUMBAI, 23 June 2024: The edible oil market has witnessed a price increase in recent months, driven by multiple global factors. These factors have caused fluctuations in global edible oil markets, leading to price hikes of INR 50 to INR 70 per 10 kg in most edible oils.
Currently, cottonseed oil stands at INR 975 per 10 kg, up from INR 930 per 10 kg three months ago. Soybean oil is now priced at INR 970 per 10 kg, compared to INR 910 per 10 kg, and rice bran oil has risen to INR 950 per 10 kg from INR 890 per 10 kg over the same period. Similarly, sunflower oil is priced at INR 980 per 10 kg, up from INR 900 three months ago and mustard oil stands at INR 1190 per 10 kg, increased from INR 1060 per 10 kg three months ago.
Sunflower oil supply from Russia and Ukraine is limited due to the off-season, aggravated by high temperatures impacting both end-season and upcoming crops. This disruption has also led to increased demand and prices for alternative oils. The Russia-Ukraine conflict has particularly impacted the global supply of sunflower oil, with Ukraine being a major producer.
Workers' protests in Argentina and floods in Brazil, have significantly disrupted soybean oil supplies. Lower crushing of soybean this season and reduced shipments from Argentina via Brazil have tightened supply, leading to a price hike. Additionally, the Israel-Palestine conflict has further contributed to supply chain disruptions, affecting the availability and pricing of various edible oils. Transportation challenges, including port blockages and shipment delays, along with increased freight costs, have exacerbated the situation, adding to the overall price surge.
Despite these increases, market players predict that the price hikes are temporary.
Priyam Patel, Managing Director of NK Proteins Private Limited, commented, “Stabilisation is expected as market conditions adjust and geopolitical tensions potentially ease. A resolution of conflicts could improve supply chain stability and decrease prices. Additionally, increased production in upcoming harvest seasons is anticipated to boost supply, helping to stabilise prices. Government measures to manage inflation and support the agricultural sector may also contribute to market stabilisation.”
| Change in edible oil prices | ||
| Edible Oil | Price 3 months ago | Current Price |
| Cottonseed Oil | 930 | 975 |
| Soybean Oil | 910 | 970 |
| Rice Bran Oil | 890 | 950 |
| Sunflower Oil | 900 | 980 |
| Mustard Oil | 1060 | 1190 |
*Prices per 10 kg in INR
Image credit: seedoilpress.com