Skyrocketing edible oil prices shock consumers

Hyderabad: With restrictions on imports and rise in petrol prices, the cost of edible oils skyrocketed by 30-70 per cent in last few months, derailing the household budgets of commoners.

Compounding the woes of consumers, the retail stores which used to sell branded oil at 35-40 per cent discounted prices on MRP are now selling at either at MRP or giving merely five to ten per cent discount.

Being one of the most essential grocery items in every house, the consumption of edible oil is substantially high in India. Industry insiders say about 60 per cent of edible oils are imported from other countries. Among edible oils, palm oil is imported in huge quantities as it is widely used by low-income groups, along with hotels and other eateries.

It is said that due to Covid-19 pandemic, there is a drastic decrease in imports from the supplying countries resulting in shortage of edible oils in the domestic market. This has led to steep increase in the prices. Branded sunflower edible oil which was sold for around Rs 100 per one litre now costs Rs 150-180 in the market. Prices of other edible oil varieties have also gone up, leading to 30-70 per cent jump in overall prices.

"Below middle-class families are frustrated with the rise in edible oil prices. During festival times, women prepare different dishes at home. With the increased prices, they are now making recipes without or less usage of oil," said P Laxmi Reddy, a housewife in Hyderabad.

So far, nothing has been done by the Central and State governments to bring down the prices of edible oils, she lamented. Generally, there will be protests from Opposition parties or voluntary organisations against the price rise of essential commodities. However, no such activities happened in the recent past, she pointed out.

"I don't know why the edible oil prices are increasing, but from the Covid lockdown onwards, rates of edible oils have been increased steeply. It's very difficult for us to buy. As the rates are high, we reduced the usage of edible oils in our home. We used to consume 5 litre oil every month, but now using only 3 litre a month," said B R­aju, a customer.

With rise in prices, kirana stores are also witnessing fall in edible oil sales. "There is a huge fall in demand of edible oils due to increase in prices. We used to sell 10 cartons of oil packets a week, but now we are selling only 3 to 4 cartons in a week," said Nagarjuna Rao, a general store owner.

Some of the States are implementing semi-lockdowns or complete lockdown owing to second wave of Covid-19. This may halt the logistics and as result, the prices of edible oils may further go up in the near future.

When contacted, P Chandra Shekhara Reddy, Vice President- Sales and Marketing, Freedom Oils, said that prices would go up further due to supply constraints. "India mostly imports sunflower oil from Ukraine and Argentina. Due to a shortage of supply, the cost for sunflower oil has increased 50 per cent, as a result, all standard brands are now selling one-litre packets at Rs 150 and above. This is likely to go up to Rs 170 very soon," he told Bizz Buzz. Even the governments have not taken any step to reduce the oil prices. There is no change in the duty structure to support farmers and to encourage cultivation of edible oil crops, he added.