India : Spike in edible oil prices dents consumers’ pocket
The recent increase in customs duties on crude edible oils, including palm, soybean, and sunflower, has led to a significant price surge across India, including Andhra Pradesh. The hike, effective from Saturday, has raised duties from 0% to 20% on crude oils and from 12.5% to 32.5% on refined oils, causing concerns among consumers and traders.
VIJAYAWADA: The recent hike in customs duties on crude edible oils, such as soybean, sunflower, and palm oil, has led to a significant surge in prices across India, with Andhra Pradesh being no exception. This sudden rise, just as the festive season approaches, has sparked concerns among consumers and traders alike.
With oil prices jumping by over 20 per cent, consumers are growing anxious about the increased financial strain. Many households are already grappling with inflation, and the spike in oil prices is expected to push up the cost of daily essentials, including tiffins and other oil-based food items.
In anticipation of even higher prices, some black marketeers have begun hoarding oil stocks, creating an artificial demand that could further exacerbate the situation during the festivities.
The Finance Ministry recently announced an increase in basic customs duty on various edible oils, effective from Saturday. The duty on crude palm, soybean, and sunflower oils has been raised from zero per cent to 20 per cent, while duties on their refined versions have surged from 12.5 per cent to 32.5 per cent.
The government argues that this decision will benefit domestic farmers by raising their income, but the immediate effect has been a sharp price rise that is hurting consumers.
Retailers and wholesalers are also feeling the pinch. S Rajesh Reddy, proprietor of Damodara Oil Mill in Kurnool Industrial Estate, expressed his concerns, stating that sales are already dipping due to the price hike.
“This increase will affect sales during the festive season. We’ll see the real impact after Monday, which is a festival,” he told TNIE.
Reddy highlighted that while palm oil production has benefited from government incentives, sunflower production remains minimal, making price fluctuations even more impactful.
He added that while soybean oil is primarily consumed by migrants from northern India, it has little demand in the southern States.
In Vijayawada, housewife Kusuma Kumari shared her worries about the escalating prices. “With oil prices rising by more than Rs 20 per litre, it’s becoming difficult to manage household expenses. We may have to cut back on our consumption if this continues,” she said.
M Vikram, a retailer and proprietor of Mahindra Dry Fruit and General Stores, noted that wholesalers have already raised prices by Rs 22 per litre for most varieties. While sales are expected to continue, he acknowledged the added burden on consumers, with limited stock availability worsening the situation.
Duty hike to benefit oil seed farmers
The Finance Ministry recently announced an increase in basic customs duty on various edible oils. The duty on crude palm, soybean, and sunflower oils has been raised from 0% to 20%. The government said this decision will benefit domestic farmers by raising their income, but the effect has been a sharp price rise that is hurting consumers
Source Link : https://www.newindianexpress.com/states/andhra-pradesh/2024/Sep/16/spike-in-edible-oil-prices-dents-consumers-pocket
Recommended for you
