As edible oil prices spike, households shift to unbranded, cheaper oils: Report
Russia’s invasion of Ukraine has impacted edible oil prices since Ukraine is the world’s biggest supplier of sunflower oil
More than a quarter of Indians are buying comparatively cheaper edible oil, at times choosing unbranded products, as cooking oil prices go through the roof, say reports.
Russia’s invasion of Ukraine has impacted edible oil prices since Ukraine is the world’s biggest supplier of sunflower oil. A report published by social media platform LocalCircles stated that the rapid rise in oil prices is compelling low- and middle-income households to opt for cheaper and low-quality oils.
As per reports, sunflower oil, peanut oil, canola oil, sesame oil, coconut, soyabean, mustard, palm oil, and olive oil prices have gone up by about 70 per cent in the last few months when compared to prices in 2019, before COVID struck.
Nationwide survey
The survey took more 36,000 responses from households in 359 districts across the country. Of the respondents, 63 per cent were men and 37 per cent were women. About 40 per cent of them were from tier 1 cities, 31 per cent from tier 2 and 26 per cent from tier 3, 4 and rural districts.
It may be noted that oil prices have risen around 100 per cent over the past year. In the last one-and-a-half months, edible oil prices spiked by almost 40%, mainly in the backdrop of the Russia-Ukraine conflict. With the war still raging, the prices are unlikely to cool down any time soon.
Also read: Amid spiralling prices, India’s fuel demand hit 3-year high in March
The Reserve Bank of India too has warned of price fluctuations in commodities, including edible oil. The inflation forecast for 2022-23 is 5.7% when compared with earlier projection of 4.5%.
The price situation in oil is very critical. For example, the price of sunflower oil, preferred by most Indian households, has increased from ₹98 per litre in mid-February 2019 to more than ₹180. The householders are feeling the pinch.
Oil prices began to rise this February. The price of packaged sunflower oil in retail stores went up by 4 per cent in February and mustard oil rose by 8.7 per cent. At the same time, soybean oil prices dropped by 0.4 per cent while that of vanaspati oil went up by 2.7 per cent. Groundnut oil price went up by 1 per cent and palm oil saw prices dropped 12.9 per cent.