Yesterday, the Indian Government announced relief for households by cutting cooking oil prices up to Rs.15 per litre. The cost of Palm oil has been reduced by Rs.7-8 per litre whereas Soybean oil prices are cut short by Rs.5 per litre. Also, the Sunflower oil prices have been reduced to Rs.10-15 per litre.
Edible oils such as palm oil, soybean oil and sunflower oil are essential commodities of the Indian kitchen. Palm oil is mainly preferred for cooking as it is inexpensive. And its subordinates are used in soaps, shampoos, biscuits, and noodles. For the past few months, oil prices have soared in the domestic market. The Reduction in oil prices will lower the kitchen expense of the general public a bit. This decision came into effect as soon as Indonesia eased the ban on Palm oil export.
Largest Importer and Exporter of Edible Oils
Indonesia and Malaysia are among the world’s largest exporters of Palm Oil. As per the Global Trade Data of 2021-22, Indonesia’s palm oil exports were about 28000 metric tons whereas Malaysia accounted for 16,220 metric tons of palm oil exports. Ukraine is the biggest exporter of Sunflower oil. In 2021, Ukraine’s sunflower exports were recorded to be $6.4 billion.
Being the largest importer of vegetable oils, India relies heavily on edible oil imports to fulfil the needs of its people. In 2021, India imported around $1.9 billion worth of sunflower oil from Ukraine. Currently, India imported 7,69,602 tonnes of palm oil in May.
Why fall in Edible Oil prices?
The Ukraine crisis has affected the sunflower oil supply as Ukraine is the leading producer of Sunflower oil. Also, Indonesia imposed a ban on its palm oil exports to ease rising palm oil prices in the domestic market. It has affected the edible oil supply chain across the world. As most countries depend on edible oil imports from Indonesia and Ukraine.
The most affected nation was India, as India imports 60% of vegetable oils to sustain its people. Palm Oil ban arisen supply chain concerns in India. Due to which vegetable oil prices rose across the Indian Market. As Indonesia lifted the ban on palm oil supply, the edible oil prices have been cut short.
Which Oil Brands Have Reduced Prices and By How Much?
Fortune Oil which is a very renowned oil brand in India has decided to cut short oil prices. New MRPs will reach the market by next week. Currently, Fortune Sunlite Oil MRP is around Rs.245 for a 1 litre pack. Price cut for fortune brands is expected to be up to Rs.15-20.
A Hyderabad-based oil brand, Gemini Edibles & Fats has announced a price cut on the MRP of its Freedom Sunflower Oil by Rs.20. Currently, one-litre pack of Freedom Sunflower Oil costs Rs.220. By next week, its MRP will be reduced to Rs.200 for one litre pouch.
Mother Dairy has announced a reduction in its edible oil variants prices up to Rs 15 per litre.
The company will present a new reduced Market Retail Price (MRP) for its Dhara variants by next week.
It is predicted that the MRP for Dhara Mustard Oil (One Litre Pack) will be reduced to Rs.193 from Rs.208.
Dhara Refined Oil’s current MRP is Rs.235 but may go down to Rs.220.
Dhara Refined Soyabean oil MRP will be reduced to Rs.194 from Rs.209 by next week.
Future of Palm oil Import from Indonesia to India
Although, India is taking measures to cut down its dependency on edible oil imports from other nations. But India is not so self-sufficient to sustain the vegetable oil needs of its people.
Recently, India banned its wheat export to ease rising domestic prices amid affected crop production. This decision came when the whole world was suffering from the Ukraine crisis. That will affect the world’s wheat supply chain as India is the world’s second-largest wheat exporter.
According to the sources, Indonesia is interested in importing wheat from India through the G2G deal. That will be very beneficial for India as it ensures no disruption in the future supply of edible oil.
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