Edible oil prices

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Part of: Prelims and GS-III – Major crops cropping patterns in various parts of the country

Context The prices of most major cooking/edible oils have dropped and stabilised across the country in the run-up to Diwali.

Reasons for the drop in prices:

Stabilisation of global prices.
Duty cuts.
Cut in wholesale prices by major private players.
Stock limits imposed by the Centre, using the provisions of the Essential Commodities Act.

India’s Dependence on Edible Oil:

India is the world’s biggest vegetable oil importer.
India imports about 60% of its edible oil needs, leaving the country’s retail prices vulnerable to international pressures.
It imports palm oil from Indonesia and Malaysia, soyoil from Brazil and Argentina, and sunflower oil, mainly from Russia and Ukraine.

Do you know?

Primary sources of Edible oil: Soybean, Rapeseed & Mustard, Groundnut, Sunflower, Safflower & Niger
Secondary sources of Edible Oil: Oil palm, Coconut, Rice Bran, Cotton seeds & Tree Borne Oilseeds.
In India major challenges in oilseed production is
- Growing in largely rain-fed conditions (around 70% area),
- high seed cost (Groundnut and Soybean),
- small holding with limited resources,
- low seed replacement rate and low productivity.

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