West Asia turmoil drives up edible oil prices, but supplies remain adequate: Govt
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The West Asia crisis has impacted global and domestic edible oil prices, but local availability remains "adequate" as imports from major supplying countries continue through the usual trade routes, the government told Parliament on Wednesday.
In a written reply to the Lok Sabha, Minister of State for Food and Consumer Affairs Nimuben Jayantibhai Bambhaniya said India relies on imports to meet a significant portion of its domestic edible oil requirement. Consequently, domestic edible oil prices are dependent on international market trends.
The recent geopolitical conflict in West Asia led to an increase in global crude oil prices, freight and marine insurance costs, leading to higher international edible oil prices, she said.
"Higher crude oil prices have also diverted more palm and soybean oil towards biofuel production, reducing export availability and pushing up both global and domestic edible oil prices," the minister said.
She said the availability of edible oils in the country remains adequate, as imports from major supplying countries continue through the usual trade routes.
"Adequate stocks are available, and imports from major supplier countries continue without significant disruption," she said.
The average retail price of groundnut oil (packed) has increased to ₹206 per kg on July 22 from ₹190 per kg six months ago. Mustard oil has increased to ₹196 per kg from ₹186 per kg, soybean oil to ₹164 per kg from ₹151 per kg, sunflower oil to ₹189 per kg from ₹169 per kg, and palm oil to ₹148 per kg from ₹133 per kg in the same period, according to data provided to the House.
The minister said the government is closely monitoring the prices and availability of edible oils in the domestic market.
The government remains prepared to undertake appropriate market intervention measures, including a review of import duty and other trade-related measures, as and when required, to ensure adequate availability and to stabilise prices in the interest of consumers, she added.