The soyabean oil prices have been rising from the past 15 to 20 days due to delay in supplies to the markets. The soyabean oil prices in retail market have surged to Rs 110 per 1 litre pouch, as compared to Rs 104 per 1 litre pouch about 15 to 20 days ago. “The edible oilpriceshave flaredupdue to late arrival of soyabean oil in the country,” said Rajesh Thakkar, President of Oil Merchants Association and owner of Shantilal Oils Private Limited while speaking to The Hitavada. Thakkar further said that India imports about 60 percent of its soyabean oil from countries like Brazil, Argentina and US to meet domestic consumption requirements. Because ofthisheavy dependence on imports, any disruption in supplies affects the prices of soyabean oil in the country. The edible oil prices have increased on account of pirate attacks on cargo ships passing through the Red Sea towardsIndia.

 

Therefore,shipping traffic is being diverted from the Suez Canal and Red Seatoward salonger route from the southern tip of Africa. The crisis has also resulted in hike in shipping and insurance charges. This has affected the soyabean oil prices in the domestic wholesale market. “The soyabean oil which is largely imported in the country has increased due to delay in its supplies amid the Red Sea crisis,” he said. Also, there has been a rise in shipping and insurance charges which is putting pressure on shipments. “The soyabeanandsunflower oilprices have escalated by 5 per cent within the past 15 to 20 days in the wholesale market due to the Red Sea crisis,” he said. The crisis has also resulted in hike in shipping and insurance charges.

 

This has affected the soyabean and sunflower oil prices in the domestic wholesale market. Inthe Itwari wholesalemarket, soyabean oil prices are being quoted at Rs 1,700 per 15 kg tin. Similarly, the sunflower oil which is mostly imported from Russia and Ukraine has also increased within the same period. Sunflower oil prices are being quoted at Rs 1,600 per 15 litre tin. Accordingly, palm oil is being quoted at Rs 1,600 per 15 kg tin, rice bran at Rs 1,600 per15kgtinandgroundnutoil at Rs 2,500 per 15 litre tin, he pointed out. Thakkarfeels that the situation would normalise within 8 to10days as supplies are coming to the ports. The soyabean oil prices are likely to drop from the month of April as supplies normalise. At present, the demand in the markets for edible oils is sluggish, he added.