Edible oil prices set to rise

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NEW DELHI: Domestic edible prices are expected to come under intense pressure after Indonesia’s decision to ban exports of edible oils, industry officials said and urged the Center to address the issue.
“Already, sunflower oil supplies have been hit by the war in Ukraine. Now, if the palm oil supply is interrupted, prices will skyrocket. Prices were already high and Indonesia’s decision will adding to pressure and hurting supply,” said BV Mehta, executive director of the Solvent Extractors Association, a trade body.
“I don’t want to create panic, but it’s a sudden big jolt and it will have implications,” Mehta said. He said the Center should now start talks with the Indonesian government to help resolve the crisis and urge them to start exports. Soaring domestic prices and the shortage of palm oil in the domestic market prompted the Indonesian authorities to restrict exports.
Mehta said that out of the total monthly consumption of all edible oils of 18 lakh tons, almost 6-7 lakh tons of palm oil comes from Indonesia. The rest of the palm oil comes from Malaysia, Thailand and Papua New Guinea.
Prices for edible oils had tightened in the domestic market and were contributing to persistent price pressures. The government took some steps to moderate prices, but they remained stubborn, adding pressure on household budgets.
Russia’s invasion of Ukraine has disrupted the supply of sunflower oil which is also widely used as a cooking medium.



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