The rise in edible oil price creates distress in the markets of Maharashtra

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Published on December 22, 2020 by

The cost of edible oil has increased by 20 percent since last year in Jalgaon; the market suffers due to the elevated rates.

One litre of soybean oil now costs Rs.112 per litre compared to Rs. 89 per litre last month. The traders say that the shortage of soybean seeds in northern Maharashtra has led to an increase in prices.

Anirudh Mandora, owner of Mayur Traders said, “We had transportation problem for soybean oil so, the transportation charges were increased and the second reason was labour shortage from where we import soybean oil and that’s why our prices have increased.”

The price increase impacts the sales of retailers and wholesalers in the city. Virendra Dhadiwal, owner of Kushboo Provision said, “Our oil sales have decreased because when the companies increase the oil price, then the wholesalers here charge more and, then in retail too. The customer who used to take five litres of oil in a month is now taking only two litres.”

Anil Kankariya, Vice President of Jalgaon Retail Association, said that the edible oil prices have increased by five percent due to the short supply of foreign currency and import policy.

Data from the Ministry of Consumer Affairs, Food and Public Distribution state that about 56 percent of domestic consumption of edible oil is met through imports to meet the gap of demand and supply. The increase in prices of vanaspati, sunflower, soybean oil is affecting the consumers’ food baskets.

Manoj Dadheech, a customer said, “Edible oil is an essential commodity so, the price should be reduced and reasonable. Already after the pandemic, there are some money issues and, now, we have to buy oil and other household goods also carefully.”

Market Analyst says edible oil prices can remain at an elevated level because of the cost to boost the economy after the covid 19 pandemic.

Santosh Kumar Singh, Head Research Analyst, GRD securities said, “Production cut in Malaysia and Indonesia is pushing the prices up. Even after import duty cut by the government, the prices are likely to remain at the elevated level.”

 

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