Edible palm oil, sunflower oil, and soybean oil become cheaper

Oil prices have fallen by upto ₹15 on Thursday. These edible oils include palm oil, sunflower oil, and soybean oil.

The oil prices have reduced considerably among the rising inflation. The prices have been reduced by upto ₹15. Palm oil prices have been reduced by ₹7 to 8 per litre. Soybean oil has seen a fall of ₹5 per litre and Sunflower oil is recorded at a decrease of ₹10 to 15 per litre. India is the largest consumer of edible oils in the world. This price decrease has a significant change in the economy. The rate of inflation in the food industry has seen a downfall after the new prices were recorded. The edible oils contribute majorly to food inflation. Due to the rising prices of oils in the last months, food inflation was recorded at 13.26 percent in May. 

The current change in prices has affected the wholesale oil market. Officials have stated their efforts to bring these prices to the retail market soon. This enables the suppliers to stock up their warehouses. The demand for oils will rise as soon as the prices are reduced for entailed users. Meanwhile, suppliers can enjoy greater profit margins. The new changes in the Maximum Retail Price (MRP) of oils will reach the market by next week. 

Palm Oil

India is the largest importer of Palm oil in the world. India captures 20 percent of the global supply of palm oil. It is most commonly used for cooking in the country. Other than in the food industry, it is also used in manufacturing cosmetics, detergents, shampoos, and biofuels. Annually, India imports 13.5 million tonnes of oil and 62 percent of which is palm oil.

India imports the majority of palm oil from two countries, namely; Indonesia and Malaysia. In April, Indonesia banned the export of edible oils resulting in a price rise of oils in India. India imported nearly 45 percent of its total oil import from Indonesia. Due to the ban and the possibility of shortage in the country, the oil prices rose. The tension in prices was relieved on May 23 when the country lifted the ban and resumed its exports. Even though the ban was short-term it affected many industries that consume palm oil. According to reports, the long-term ban would tighten conditions for the country. The new fall in prices will assist the manufacturing industries in consuming oil as raw material.

Sunflower Oil

The sunflower oil prices have been reduced by ₹15 per litre resulting in the current rate of ₹220 per litre. The officials stated that the prices for Sunflower oil are expected to reduce further by ₹20 per litre, marking the retail price at ₹200 per litre. India has signed new suppliers for the import of Sunflower oil globally. The partial supplies have started from Argentina and Russia. As a result, the prices may drop further. 

Sunflower oil is majorly consumed in Southern states of India as well as in Orissa. The oil is largely used for cooking purposes but also serves the medical industry. 

The fall in prices will be fruitful for the consumers as well as for the economy. During the rising inflation, this was a necessary change. It will ease tensions, especially in the food industry. The international conditions are easing, which is a key helping agent in improving economic conditions. The prices are further expected to improve which will be beneficial.