Cooking oil prices surge 13% in a month, no post-Diwali reprieve
The prices of cooking oils like palm and sunflower have risen by 10-13% over the last month, even post-Diwali, which is unusual. Key factors include increased global palm and soybean oil prices, China’s strong buying, and reduced supplies in India. Palm oil prices have surged about 11% in the past month and nearly 30% since January, primarily due to lower production in major suppliers like Malaysia and Indonesia, which has taken the industry by surprise.
Pune: Prices of cooking oils such as palm and sunflower have surged 10-13% over the past month, with no reprieve even after the Diwali peak demand season, taking the industry by surprise and pressuring packaged goods firms to raise prices.
Strong rally in international prices of palm and soyabean oil, strong buying by China and supply shortages in India are some of the reasons that are keeping cooking oil prices firm, analysts said.
“Palm oil prices have increased by about 11% during past three to four weeks, while they have gone up by about 30% since January, mainly due to lower production in Malaysia and Indonesia, which has surprised everyone in the business,” said Sandeep Bajoria, chief executive of Sunvin Group, a broking and consulting firm focused on the oilseeds industry.
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