Global edible oil prices rise with crude, consumers bear the brunt: Sunvin’s Sandeep Bajoria
Rising crude oil prices are driving global edible oil prices higher as more vegetable oil is diverted to biodiesel. India remains vulnerable due to heavy imports, while higher freight and domestic oilseed costs are pushing retail prices up despite adequate global supply.
Sandeep Bajoria, CEO, Sunvin Group, said rising crude oil prices are pushing up edible oil prices globally, driven by increased diversion of vegetable oils toward biodiesel production.
“Every $10 rise in crude oil automatically puts around a $50-$70 rise in the veg oil,” he said.
Bajoria explained that a significant portion of global vegetable oil output is now being used as fuel. “The world’s 25% of veg oil is going into biodiesel,” he said, highlighting programmes across countries such as Indonesia, Brazil and the US that are increasing demand for biofuels.
India, being the largest importer of edible oils, remains exposed to global price movements. Bajoria said the country imports around 16–16.5 million tonne annually to meet the total consumption of about 26.5 million tonne.
Despite rising prices, Bajoria clarified that supply is not a concern. “There is no shortage… enough oil is available for the consumer,” he said, noting that imports continue without disruption across global shipping routes.
However, higher costs are being passed on to consumers. Unlike fuel, where governments can absorb part of the impact, edible oil prices are directly reflected in retail markets. “We have to live with the higher prices,” he said.
He also pointed to rising freight costs and firm domestic oilseed prices as additional factors contributing to higher retail prices. With the next crop cycle only expected later in the year, domestic supply pressures may continue in the near term.
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Source : CNBC Tv18
