There is news of relief for Indian consumers. Now edible oil (Edible Oil) and may be cheaper. Because of the concern of increasing production, the price of palm oil in Malaysia has fallen to a low of 6 and a half months i.e. 195 days. Its price has fallen by 37 percent from the record high of 7,268 ringgit (Malaysia’s currency). Market experts say that this week the sentiment in palm oil has turned into a recession with a lot of strength. Overall, the situation is that the price of crude palm oil Kandla will gradually fall below Rs 1,100 and in the coming months the price may fall below Rs 1,000 per 10 kg. India imports maximum palm oil in the form of edible oils.
India has not yet become self-sufficient in edible oils. We import edible oil worth about 70 thousand crores every year from Indonesia, Malaysia, Russia, Ukraine and Argentina etc. In which the largest part is of palm oil. There is a gap of about 55 to 60 percent in the demand and supply of edible oils. The demand for edible oils in India is around 250 lakh tonnes, while the production is only 110 to 112 lakh tonnes. Therefore, the price of edible oil here is more affected than imports.
What do market experts say?
According to Rajiv Yadav, Senior Vice President, Origo Commodities, there has been a decline of 10 to 15 percent in the prices of edible oils this week. In edible oils, especially palm oil, the maximum decline of 15-20 percent has been registered. Two years ago, due to the boom in palm oil, there was a boom in other oils. At the same time, this time also the same story is being seen in recession. In the last two months i.e. from May to June, till now the prices of palm oil in Malaysia and Indonesia have seen a decline of 30-35 percent.
Edible oil prices may fall further
Rajiv says that due to the removal of ban on exports by Indonesia and reduction in duty, there has been an increase in the supply of palm oil globally. On the other hand, despite the war, the export of sunflower oil from Ukraine has increased more than expected in the months of May and June. Crude oil has fallen by more than 10 per cent this week due to concerns of a global recession, which has also affected the prices of edible oils. Yadav says that the prices of edible oils have touched their highest level this year and by the end of this year edible oils may see a further decline of 10-15 per cent.
How much was the import?
India’s crude palm oil imports during May fell by 1.4 per cent on a monthly basis to 4,09,027 tonnes as against 4,14,829 tonnes in April 2022. However, May 2022 imports are 46 percent less than May 2021’s 7,55,633 tonnes. According to the latest report of the Malaysian Palm Oil Board, palm oil production in Malaysia reached a 5-month high of 1.46 million metric tons in April 2022, which is 3.60 percent higher than March’s production of 1.41 million metric tons. However, the production is lower by 4.6 per cent as compared to 1.53 million metric tonnes in the same period last year.
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