Edible oil prices

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.