PROVIDING some comfort to the consumers, the soyabean oil prices which were at peak levels in the month of April have now dropped significantly in the wholesale market. The soyabean oil is now being quoted at Rs 2,140 for 15 kg tin (Rs 143 per kg), as compared to Rs 2,700 for 15 kg tin (Rs 180 per kg) in the month of April, a sharp fall of Rs 560 (Rs 37 per kg). There are several factors which have contributed to the fall in soyabean oil prices.
“The fall in edible oil prices can be attributed to various factors like slower demand in the domestic market coupled with drop in prices in the international market and Government measures like exempting customs duty on import of 20 million tonne (MT) of crude soyabean and sunflower oil to contain the domestic prices,” said Rajesh Thakkar, President of Oil Merchants Association and owner of Shantilal Oils Pvt Ltd, Itwari while speaking to The Hitavada.
However, there some people who prefer to buy the 1 litre soyabean oil packets which actually contains only 910 grams and therefore there is price difference. These oil packets cost is lower as compared to buying a 15 kg tin. In retail, the soyabean oil packets are now being quoted at Rs 132 per 910 gram as compared to Rs 166 per 910 gram in the month of April, a drop of Rs 34 per 910 gram packet, Thakkar said.
Another reason for the high edible oil prices is due to rise in input costs like packaging material. The oil manufacturers have to incur various expenses for packing oil. They have to buy the 15 kg tin which is costing Rs 125 per tin.
Also, the 5 litre plastic can is costing Rs 32 per can, as compared to Rs 25 per can a few months ago. Similarly, the 910 gram plastic pouch or packet is costing Rs 2.50 per piece as compared to Rs 2 per piece earlier, he said.
All these factors have also contributed to the high cost of edible oils in the market. If these expenses can be contained then the edible oil prices can become cheaper, he said.
He explained that the situation in the international market has slightly improved. One of the largest exporting countries Indonesia which had banned exports of palm oil has now resumed exports, he pointed out.