Imported Soybean and Sunflower Oils Prices Plummet by 46-57%

New Delhi: India witnesses a major fall in the prices of imported crude Sunflower and Soybean oils following the opening of the supply chain from Ukraine, a war-hit nation. As per recent reports, these oils have witnessed a significant decline of 46-57% in the past year. Surprisingly, despite the fall in wholesale and retail prices, the difference only ranges around 16-17%. Sources suggest that the cost of imported crude Sunflower oil is currently lower than that of imported crude Soybean and Palm oil, which marks a vast contrast from the situation observed a year ago.

Since the opening of the supply chain from Ukraine, there has been an exponential increase in the supply of Sunflower oil, resulting in a significant drop in its prices in recent months. Despite this, consumers are yet to fully reap the benefits of the lowered prices of imported crude Sunflower and Soybean oils, as the domestic prices remain relatively high. Industry insiders report that it can take several weeks for the reduction in prices to trickle down to the wholesale and retail markets due to the time required for processing, packaging, and distribution.

The Ministry of Food has issued a directive to companies producing edible oil, requesting them to reduce the Maximum Retail Price (MRP) of their products to reflect the substantial drop in global prices. Since over half of the country's annual demand for edible oil is met through imports, and a significant portion of this comprises crude Palm oil, fluctuations in global prices have a considerable impact on local prices.

A comparative analysis of international and domestic Palm oil prices reveals a significant drop in both retail and wholesale prices of the popular edible oil. This decline corresponds with the downward trend in imported prices over the past year. Imported crude Palm oil prices have dropped by a substantial 48%, while retail and wholesale prices have reduced by 37-38%. As Palm oil comprises nearly 40% of total domestic consumption, this decrease has resulted in an overall reduction in the prices of other edible oils as well.