New Delhi: The Union government has formed an inter-ministerial committee to monitor domestic prices, shipments and availability of agri commodities, especially edible oil, as higher fertiliser and global commodity rates have sent domestic food prices soaring, an official said, requesting anonymity.
India imports up to two-thirds of its cooking oil requirement to meet domestic demand. A sudden decision this week by Indonesia, the world’s largest palm oil shipper, to ban palm oil exports has sent edible-oil prices into a tailspin, straining supplies already choked by drought and shortages after Russia’s invasion of Ukraine.
The committee, headed by Union food secretary Sudhanshu Pandey, this week reviewed the availability of edible oils in the country and met representatives of major oil processing associations.
According to data provided by the food ministry, India’s current stock of all types of edible oil is estimated to be 2.1 million tonne approximately, which is sufficient for the month of May. Another 1.5 million tonne of imported edible oil is in transit, which will arrive in batches during the course of the month, the data showed.
India imports nearly eight million tonne annually to meet its domestic demand. In March, retail inflation quickened to 6.95% – a 17-month high -- compared to 6.07% in the previous month, driven by a sharp jump in food prices, according to latest available official data.
{{/usCountry}}India imports nearly eight million tonne annually to meet its domestic demand. In March, retail inflation quickened to 6.95% – a 17-month high -- compared to 6.07% in the previous month, driven by a sharp jump in food prices, according to latest available official data.
{{/usCountry}}“The Centre is keeping a close watch on prices of edible oils so that appropriate measures can be taken to keep a check on the prices,” an official statement by the food ministry said on Sunday.
Edible oil prices have remained elevated to due to global supply disruptions and has knocked household budgets. Palm is used in most processed food items, from ice-creams to cookies, and in personal care products, such as soaps.
The inter-ministerial panel has been tasked with reviewing price movements on a weekly basis of edible oils and other food items. It is also assessing domestic output, demand, global prices and international trade volumes, the official said.
Special teams have also been constituted to crack down on hoarding and profiteering under the Essential Commodities Act by surprise checks on edible oil processors and traders.
According to Pradeep S Mehta, secretary-general of the consumer advocacy firm CUTS International, edible oil prices could go up by 100-200% if India doesn’t finalise alternatives sources.
Analysts from international brokerages have said that Indonesia’s ban was likely to be temporary as that country did not have the capacity to store surplus oil. Indonesia clamped a ban on both crude and refined palm oil and palmolein as prices had risen domestically.
Palm oil (crude plus refined), accounts for roughly 62% of the total edible oils imported by India, mainly from Indonesia and Malaysia.