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Sunday, May 28, 2023

Prices of imported soybean, sunflower oils fall by 46-57% – Times of India

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NEW DELHI: Prices of imported crude sunflower and soybean oils in India have fallen by 46-57% in the past one year after the opening of the supply chain from war-hit Ukraine. However, the drop in retail and wholesale prices of these two edible oils are barely in the range of 16-17%.
As per data from Solvent Extractors’ Association of India (SEAI), the price of imported crude sunflower oil is now less than the cost of both imported crude soybean and palm oil, a sharp contrast to the situation a year back. Data show the international price of crude sunflower in Mumbai on Friday was $995 (Rs 81,300) per tonne while the prices of imported crude palm and crude soybean were $1,005 (Rs 82,000) and $1,045 (85,400) per tonne respectively. A year back, the price of imported crude sunflower at $2,300 (Rs 1.7 lakh) was way above the prices of crude palm and crude soybean.
“The supply of sunflower oil is exponentially high since the supply chain from Ukraine opened and they still have huge stock for export. That’s why we have seen such a fall in prices of sunflower oil in recent months,” said BV Mehta, executive director of SEAI.
Consumers are yet to get the full benefit of the steep fall in prices of imported crude sunflower and soybean oils and the domestic prices are still on a higher side. Industry sources said it takes a few weeks to see the impact of reduction in prices of imported crude oil in the wholesale and retail market as processing, packaging and distribution take time.
The food ministry has directed edible oil companies to cut the MRP of their products in line with the sharp reduction in international prices. SEAI has also issued two advisories to its members to reduce the prices.
Swing in international prices of edible oil has a huge impact on the domestic prices as nearly 56% of annual demand is met from imports only and a large chunk of this is crude palm oil.
Interestingly, comparative analysis of international and domestic prices of palm oil shows that both retail and wholesale prices of the edible oil have come down sharply, commensurate with the trend of imported prices in the past one year. While the price of imported crude palm oil has fallen by 48%, the retail and wholesale prices have reduced by 37-38%.
This has impacted the overall fall in prices of other edible oil as palm oil has nearly 40% share of the total domestic consumption.

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