News Karnataka
Wednesday, July 06 2022
Economy

Edible oil stock is enough, industry hopes for ban lift - 3 min read

Edible oil stock is enough, industry hopes for ban lift 484327
Photo Credit : IANS

New Delhi: Two days after the export ban on palm oil by Indonesia became effective, India on Sunday said it has an optimum stock of all edible oils, sufficient to cover the lean period.

On the other hand, trading bodies are optimistic that Indonesia will need to deal with its own continuing production of both crude palm and palm oil and hence will not be able to continue with the export ban for long.

The market that was already on the edge since the Ukraine-Russia war broke out in late February, faced a double whammy when Indonesia imposed the export ban from April 28 owing to domestic reasons.

Palm oil (Crude + Refined) constitutes roughly around 62 per cent of the total edible oils imported and is imported mainly from Indonesia and Malaysia, while Soybean oil (22 per cent) is imported from Argentina and Brazil and Sunflower oil (15 per cent) is imported mainly from Ukraine and Russia.

“As per the industry sources, the present stock of all edible oils in the country is 21 lakh metric tonnes (LMT) approximately and 12 LMT approximately is in transit arriving in May 2022. Therefore, the country has sufficient funds to cover the lean period due to the ban on export by Indonesia,” the Ministry of Consumer Affairs, Food and Public Distribution said.

On the oilseeds front, the Department of Agriculture and Farmers Welfare’s (DA&FW) second advance estimate released in February 2022 has shown a very positive picture of Soybean production for the year 20221-22 at 126.10 LMT, which is higher than last year’s production of 112 LMT. As a result of the higher sowing of Mustard seeds by 37 per cent in all major producing states, including Rajasthan, in comparison with last year, the production may rise to 114 LMT in the 2021-22 season.

See also  Interest rates: why the era of cheap money is finally ending

Solvent Extractors’ Association (SEA) executive director B.V. Mehta said, “As of now, we have enough stock. Because of the ban, we may face a shortage of roughly 10 per cent but we are hopeful, that Indonesia will need to review the ban soon as it will face logistics issues for storing its routine production. We have been asking our members to cooperate with the government directives too for keeping the prices in check.”

Ministry officials said, “The Department of Food and Public Distribution is monitoring the price and availability situation and meetings are being held regularly with major Edible Oil processing Associations to discuss a further reduction in the domestic edible oil prices and MRP to give relief to consumers,” officials said.

The Inter-Ministerial Committee holds weekly meetings on Agri-Commodities to closely monitor the prices and availability of agricultural commodities including edible oil keeping in view the interest of the farmers, industry, and consumers. The committee reviews the price situation on a weekly basis, and considers relevant measures in relation to edible oils and other food items depending on the domestic production, demand, domestic and international prices, and international trade volumes.

Read more:

Indonesia’s palm oil export ban may impact edible oil prices

Agri cess for crude palm oil reduced to keep price rise in check

Govt imposes stock limits on oils, oilseeds till June 30

India extends ‘free’ import policy for different palm oils

Centre’s intervention helped keep edible oil prices in check: Govt

MANY DROPS MAKE AN OCEAN
Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Leave a Reply

Your email address will not be published.

Subscribe to our Podcast across platforms
AnchorAmazon MusicSpotifyGoogle PodcastsRadio PublicRSS

Visit 7Jackpots and find the best online casinos in India! Play the most popular casino games for real money!

Find the best odds at 10Cric and ipl betting 2021! Signup today and get up to a 100% deposit bonus.

Subscribe Newsletter

Get latest news karnataka updates on your email.

To get the latest news on WhatsApp