Edible oil prices
Part of: Prelims and GS-III – Major crops cropping patterns in various parts of the country
Context The prices of most major cooking/edible oils have dropped and stabilised across the country in the run-up to Diwali.
Reasons for the drop in prices:
- Stabilisation of global prices.
- Duty cuts.
- Cut in wholesale prices by major private players.
- Stock limits imposed by the Centre, using the provisions of the Essential Commodities Act.
India’s Dependence on Edible Oil:
- India is the world’s biggest vegetable oil importer.
- India imports about 60% of its edible oil needs, leaving the country’s retail prices vulnerable to international pressures.
- It imports palm oil from Indonesia and Malaysia, soyoil from Brazil and Argentina, and sunflower oil, mainly from Russia and Ukraine.
Do you know?
- Primary sources of Edible oil: Soybean, Rapeseed & Mustard, Groundnut, Sunflower, Safflower & Niger
- Secondary sources of Edible Oil: Oil palm, Coconut, Rice Bran, Cotton seeds & Tree Borne Oilseeds.
- In India major challenges in oilseed production is
- Growing in largely rain-fed conditions (around 70% area),
- high seed cost (Groundnut and Soybean),
- small holding with limited resources,
- low seed replacement rate and low productivity.