Edible oil import cost slumps, but dependence continues
Most parts of state are dependent on Malaysia and Indonesia for palm oil, and Chicago and Ukraine for sunflower oil.
Published: 01st March 2023 06:47 AM | Last Updated: 01st March 2023 06:47 AM | A+A A-
Image used for representational purpose only. (File photo)
BENGALURU: Even after a year of the Ukraine-Russia war, the dependence on Ukraine for oil continues, especially sunflower oil. According to the oil and oil seeds association, the quality and quantity of oil being imported have not changed. However, the rate of edible oil has reduced. Earlier, edible oil was being imported at Rs 1,600 per 10kg, which has now reduced to Rs 1,135 per 10kg, said the members.
Experts and association members said that although many local companies started manufacturing and sale of edible and cold pressed oil, they comprise only one per cent of the market share. Therefore, the dependence on import of palm and sunflower oil continues.
Most parts of state are dependent on Malaysia and Indonesia for palm oil, and Chicago and Ukraine for sunflower oil. Recently, Union Finance Minister Nirmala Sitharaman, during the G20 meeting in Bengaluru, had stated that India was keeping a close watch on the war situation as the dependence for oil import continues. DD Prahalad, joint secretary, Bengaluru Oil and Oil Seeds Association, said that no other market was explored as an alternative during the war, and this is the key reason for the dependence.
The price reduction shows there has been good supply, but it is affected by cost of transportation and port location. Although the country grows groundnuts, the net market share in oil production is below 5%, Prahalad added.
