Edible oil prices in India will remain high until new crop in November 2021

Published 2021년 8월 31일

Tridge summary

The article highlights the significant rise in cooking oil prices worldwide, driven by increased demand for soybean oil, particularly for biodiesel production, which in turn affects palm oil prices. The coronavirus outbreak in Malaysia has also contributed to a decrease in the supply of edible oil, further escalating prices. Retail prices for cooking oil in India have surged by 52% year-over-year in July 2021. In an effort to mitigate these price increases, India's government has lowered the import tax on crude palm oil and refined palm oil/Palmolin for a limited period.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Mr. BV Mehta - Executive Director of the Edible Oils Association of India (SEA) said that the import tax will hardly be reduced anymore when the Indian market consumes more than half of the cooking oil demand through imports. Experts say that the price of cooking oil is likely to continue to increase until the new crop starts from October to November 2021. In the world market, the price of cooking oil increased sharply due to many different reasons. Soybean oil prices have increased due to strong demand from the US, Brazil and other countries to import for biodiesel production; The increase in soybean oil prices has led to the increase in palm oil prices. When soybean oil price is sold at 1300 USD/ton, palm oil price will be about 100-150 USD/ton lower. So, rising soybean and sunflower oil prices are pushing up palm oil prices. Forecasts for cooking oil in the second half of this year have not changed much. Sunflowers in the UK will be harvested in August 2021 and will start ...

Source: Vinanet