The price of edible oil, which has been witnessing a sharp rise in recent months, is likely to see a downtrend in the next two days. In the month of May, the monthly average retail prices of all edible oils soared to an 11-year high at a time when household incomes have been hit due to the COVID-19 pandemic. The prices of edible oils have seen a decrease of 15 percent in the last four days. A major decision in the United States on Tuesday can further make the edible oils cheaper by Rs 40 to Rs 50 a litre.
Shankar Thakkar, the national president of the Federation of All India Edible Oil Traders, explained the reasons behind the rise in edible oil prices. He said that a large amount of oil is imported from America, Malaysia, and Indonesia. The production work in Malaysia and Indonesia has been impacted due to Eid. “Some time ago, in America, up to 46 percent of refined oil was allowed to be mixed in biofuel. Whereas earlier it was mixed up to 13 percent,” he said.
A decision on Tuesday will be taken in the US up to what percentage of other edible oils should be mixed in biofuel. The decision to mix refined oil up to 46 percent can also be withdrawn.
Now, the production in Malaysia and Indonesia has resumed and it also resulted in the 15 percent price drop of edible oils in the last four days. Another reason that would cause the reduction in the price of the edible oil is that new mustard seeds are ready to arrive on the market
Local oil trader Lala Girdhari Lal Goyal said, “If we talk about mustard production this year, then it was up to 86 lakh tonnes. Now, with new mustard seeds in the market, there will be a price drop in edible oils.”