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Why edible oil prices have surged to their highest in a decade -Devika Singh

-Moneycontrol.com

Edible oils have risen as much as 62 percent in the last year as bad weather in major producing countries and increasing use of biofuels has hit supply, but experts say the market will stabilize in a few months

Prices of edible oils such as mustard, vanaspati, soya, palm, sunflower, and groundnut are more than their highest in a decade.

Prices have risen as much as 62 percent from last year, Food Secretary Sudhanshu Pandey said at a recent meeting on the issue.

Data from the ministry of consumer affairs, food and public distribution shows that compared with May 2020, there is a steep rise in price of a kg of various cooking oils -- mustard to Rs 170 from Rs 115, palm to Rs 138 from Rs 85, sunflower to Rs 175 from Rs 110, vanaspati to Rs 140 from Rs 90 soya to Rs 155 per from Rs 100.

What’s causing the spike?

India imports about 65 percent of its annual requirement of 14.5 million tonnes of cooking oils. International prices are rising because of lower output in major producers Indonesia, Malaysia, Argentina, Ukraine and Russia, mostly because of bad weather.

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