After softening last year, the prices of edible oils have continued to rise since January this year. In February, the selling prices of branded sunflower, vanaspati, mustard and groundnut oil increased by up to nine per cent on a monthly basis.
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According to data from retail price tracking platform Bijom, the price of packaged sunflower oil has increased by four per cent in the last month as compared to January. At the same time, mustard oil has become costlier by 8.7 percent in the same period. However, soybean oil prices declined marginally by 0.4 per cent.
According to the data, vegetable oil prices have risen 2.7 per cent in February and groundnut oil prices have risen by one per cent.
Big drop in palm oil prices
The price of palm oil, the most widely used among Indian households, has seen a significant drop of 12.9 per cent in February. However, its price is still 22.9 per cent higher than the same period a year ago. Bijom tracks the retail prices of over 75 lakh retail outlets across India.
Softness in the last two quarters
According to data from Bijom, the prices of edible oils in the country have moderated in the September and December quarters of last year. According to the data, the prices of edible oils have started rising again from January 2022. However, in January, edible oil prices were lower by 10 to 30 per cent from two-year highs.
Russo-Ukraine war will have impact
The Russo-Ukraine war will have a long-term impact on the prices of key commodities, including edible oils. This is because Ukraine is a major supplier of sunflower oil. Bijom’s Chief Marketing Officer Akshay D’Souza says that the prices of edible oils have remained stable for the last two years due to the measures taken by the government, but now the scenario has changed in most of the edible oils due to the Russo-Ukraine war.
Up to 20% growth on an annual basis
According to the report released by BNP Paribas on March 17, the price of edible oils has increased by 15 to 20 percent on an annual basis. Most of the edible oil prices remain higher than the pre-COVID levels. The price of sunflower oil is 50 percent higher than in February 2020. At the same time, vegetable oil has become costlier by 58 percent and soybean oil by 20 percent.