Why is India losing sleep over record high vegetable oil prices?
NEW DELHI: India, the world's top importer of vegetable oil, will have to spend billions of extra dollars this year to buy more costly cooking oil from overseas and is mulling cutting taxes on those imports to soften the blow to the economy, industry offi als have said.
The go nment is considering reducing taxes on vegetable oil imports after cooking oil prices hit record highs last month as it seeks to make food costs more affordable for its population of over 1.3 billion and keep price pressures at bay.
Why have global edible oil prices rallied so much?
Problems in the global production of key oilseeds coupled with rising biodiesel use have fuelled the global vegoil rally.
Soyoil futures have jumped more than 70% this year after drought tightened US and Brazilian soybean supplies. The US Department of Agriculture has forecast global soybean stocks will fall to a five-year low of 87.9 million tonnes by September.
Palm oil prices, the most widely consumed edible oil, also rallied 18% in 2020 after Covid-19 lockdowns curbed output from plantations in Southeast Asia.
Benchmark futures in Mysia touched 4,142 ringgit ($1,007.30) a tonne in mid-March, their highest since 2008.
Poor rapeseed and sunflower seed harvests in Europe and the Black Sea region further tightened edible oil supplies, hel push global food prices to 10-year highs last month.
Mirroring record global prices, domestic palm oil and soyoil rates have more than doubled in the past year.
Modi is responsible. Where is the Troll Army?
Do you know that Modi is indeed responsible? Modi removed all edible oils from essential things list thereby allowing Adani(fortune) to increase prices!
Taxes on imported edible oils has been fixed during UPA times and has not changed.
Local oil seed producing farmers do not want go nment to reduce taxes on imported oils as they fear that will shring their income.
Go nment is incetivizing farmers to switch to oil producing seed farming since 2014 but switch is taking time as farmers are hell bent on wheat, rice and sugarcane ...
and our farmer don't see any opportunity in this. they want free ricity water and msp to continue producing paddy deplete water tables and burn residues to choke the atmosphere
Well Said !! Agriculture is subject matter of State. All states shall arrange cultivation of Oil seeds for their respective demands.
Foolish Indians need to suffer. Modi's 'make in India ' is very much applicable here .
Go nment should interfere
How Modi Govt. can help in all matters ? Agriculture is subject matter of State. All states shall arrange cultivation of Oil seeds for their respective demands. Modi will arrange oxygen, medicines, vaccines, MSP, PDS (Ration) & now Edible Oils also ? This is ridiculous & absurd !!!
they can stop export of groundnuts so that prices can come down. we have exported 670 tonnes of ground nut in one year that too 40 tonnes to our great china.
This is a crisis that was predicted since 1980s due to mismanagement of the agricultural sector as a result of lopsided policies. The policies encourage over production of rice, wheat and sugarcane at the expense of other crops.
Under Modi ji , we indians are now one of the developed nations in world. We can definitely afford this. Hail Modi ji
people of India special this farmers need to focus on growing vegitable oil seeds so that they can earn more, for this media and state go nment with central go nment need to incentive to farmers who grow groud nut, sunflower etc
BJP misrule -- failure to foresee /anticipate global demand for veg.oil rising --- and timely action plan - motivating more oil seed cultivation here...... has put the low-rung families into more trouble --- In the guise of curbing imports - raising import tax/duty --- only fills in govt. coffers --- leaves consumers high & dry.........
BJP has done a great job incentivizing the oil seed farmers to wean them out of dependence on wheat and rice...It will take time - Cannot be done in or two weeks...It takes years before farmers realize there is money to be made in growing oil seeds...
High time for Modi to resign. This BJP govt is a gross failure.
We have to plan the agri produce based on the demand and supply. Why we are not produce the same cooking oil in India, we are agri based country for us it will not take more than 4 years to get rid this mess of Cooking Oil imports.
We have been facing a shortage for almost three decades. It would take a lot of effort from farmers and the go nment to resolve it.
Proud Modi Bhakt
Prices may have risen slightly, but income of middle class has also increased substantially in the last 7 years.
All essential items are extremely affordable.
Middle-class is extremely happy with Honorable PM Shri Modiji .
slightly edible oil 65%, lintels 60% need not mention about petrol and gas. the people are struggling and the go nment is aimless. we are far less than Bangladesh in GDP and per capita income. we are very happy with the present rulers ???
Subba Iyer Mani
Ask the Finance minister; perhaps she may say she has no idea as she doesn’t use vegetable oil.
Worthless go nment at the centre