Milk and Edible Oil Prices Surge Across India, Here’s What You Need to Know
Milk prices have risen ₹13/litre since June 2021, and edible oil prices surged ₹10–20/litre since September 2023. RBI reports show a 25+ point rise in edible oil and a 30-point rise in dairy indices. High demand, reduced imports, rising costs, and summer production dips are key drivers. Pulses, fruits, and vegetables remain stable, offering some relief.
Milk and Edible Oil Price Hike: The prices of milk and edible oil are skyrocketing across the country. Since June 2021, the price of milk has increased by ₹ 13 per liter. Apart from milk, dairy products like curd, paneer, and buttermilk are also getting expensive. At the same time, the prices of edible oil have also increasing continuously since September 2023
What does the RBI report say
However, the fall in the prices of grains, sugar, pulses, and vegetables has kept the spirits of the people high. This report of RBI presents a dual challenge: while the overall economy seems to be stable, the prices of some daily essential items are becoming uncontrolled.
Where did the prices increase and where did we get relief
Sunflower oil: ₹130 to ₹159.2/kg
Mustard: ₹152 to ₹170.8/kg
Peanuts: ₹182 to ₹190.4/kg
Pulses (prices stable)
Urad: ₹117/kg
Mung: ₹111.1/kg
Lentil: ₹87.7/kg
Gram: ₹86.3/kg
Why are milk and oil getting expensive?
Rising milk prices
- Milk production decreases in summer, while demand increases. The milk-giving capacity of animals decreases in summer.
- Storage and transport expenses of dairy companies also increase.
- In 2022-23, 230.58 million tonnes of milk were produced in the country, but the per capita availability is only 459 grams/day, which is not in line with the increasing demand.
Rising edible oil prices
The trend towards pure oil: People are now prefer to buy pure oil (mustard, peanut) instead of refined, which has increased their demand.
Reduction in imports: Palm oil imports fell by 53% in April. Although India is still the 7th largest oil importer in the world, the reduction in imports has put pressure on domestic prices.
Rising consumption: Oil consumption was 8.2 kg/year in 2001, which is expected to increase to 23.5 kg in 2024. This rising demand is also pushing prices up.
Uncertainty in the global market: According to JNU professor An Kumar, the productivity of edible oil in India is low, and there is a lot of uncertainty in the global market, which may further increase prices if the supply chain is disrupted.
These factors together are causing a continuous increase in the prices of milk and edible oil.
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Source : Times Bull
