International prices of crude edible oils saw a steep fall between May 2022 and May 2023. However, domestic prices didn’t witness a proportionate slide. Here's why
Prices of vegetable or edible oils have been on a rollercoaster in recent years. But no matter where the rates go, the demand for them keeps pointing north in India, one of the largest consumers. That means retail prices stay relatively high even when there is a significant dip in international markets. Why?
Domestic rates don’t mirror drop in global prices
In 2021-22, India consumed 25.8 million tonnes (MT) of vegetable oil, around 6 MT more than what it consumed a decade before. The country relies on imports to meet the bulk of its needs and that means the prices of these oils in the domestic market are linked to international rates.
Domestic rates don’t mirror drop in global prices
In 2021-22, India consumed 25.8 million tonnes (MT) of vegetable oil, around 6 MT more than what it consumed a decade before. The country relies on imports to meet the bulk of its needs and that means the prices of these oils in the domestic market are linked to international rates.