Preparations for Diwali have started in the country. Meanwhile, big news has come out for the consumers struggling with the high prices of edible oils. It is expected that people troubled by inflation can get some relief in the festive season. Under which Diwali edible oils A fall in prices is expected. This information has been given by the National President of All India Edible Oil Traders Federation, Shankar Thakkar. But, on one hand, this decline has brought news of relief for the consumers. On the other hand, this concern has also brought for the farmers of the country. Let us understand what is the arithmetic behind the fall in edible oil prices and how this relief can become a disaster for the farmers.
Palm oil imports at 11-month high
The National President of All India Edible Oil Traders Federation, Shankar Thakkar has explained the mathematics related to the estimation of fall in the prices of edible oils before Diwali in the country. According to Thakkar, India’s palm oil imports almost doubled to an 11-month high in August from a month earlier. Explaining the reason behind this, he says that due to falling prices in international markets and the ongoing war between Malaysia and Indonesia to sell palm oil, there has been an increase in imports.
According to Thakkar, higher purchase of palm oil by the world’s largest edible oil importer may support its futures trade. At the same time, top producer Indonesia can help in reducing ballooning inventory. According to average estimates, India’s palm oil imports in August increased by 94 per cent to 1.03 million tonnes from a month earlier, he said.
Affordable for Palm Oil Consumers
On the other hand, Tarun Jain, National General Secretary of All India Edible Oil Traders Federation, says regarding this matter that palm oil has become very economical as compared to other oils. The difference in prices has widened sharply in the last month. Crude palm oil is being offered at $1,011 per tonne including cost, insurance and freight (CIF), as compared to $1,443 for crude soya oil. Indonesia’s move to allow duty-free exports by the end of October increased market supply and slashed prices; In April-May, Indonesia was restricting exports. Now it has happened that the market has been flooded to reduce the stock.
Farmers’ problems will increase like this
The National President of All India Edible Oil Traders Federation, Shankar Thakkar, while explaining the mathematics of loss to the farmers due to the fall in the price of edible oils, says that due to the increase in the limit of the import duty reduction order by the Government of India, imports will continue to grow on a large scale. Will be. Due to which the farmers coming to the markets with a new crop will get the price of the crop much less than their thinking and again the farmer will think twice for the next crop. Therefore, the government should take a proper decision regarding the import duty if the prices of oils fall more in the international markets. Otherwise, the government’s thinking of making India self-reliant in the matter of oils will be left to the ground.
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