No Edible Oil Price Hike Expected During Diwali Despite Cancelled Import Deals 

In a significant development, edible oil traders have cancelled palm oil import deals to capitalize on higher global prices. Approximately 1 lakh tonnes of palm oil contracts have been scrapped, with traders selling to other countries at elevated rates. However, industry experts assure that this move will not lead to a price hike or shortage of edible oil during Diwali.

According to Dr. Bharat Mehta, Executive President of The Solvent Extractors Association (SEA), India’s increased import duty on edible oil and sufficient reserves will stabilize prices. Palm oil production in Indonesia, the largest producer, has declined due to emphasis on biodiesel production under the B-40 policy. Malaysia, the second-largest producer, has raised export duty, increasing global prices.

Currently, the import rates for various edible oils are: crude palm oil at $1011 per tonne (up from $979 in July), crude soybeans at $1015 per tonne (down from $1054 in July), and sunflower oil at $1019 per tonne (down from $1043 in July). With minimal price differences between palm oil, soybean oil, and sunflower oil, traders are shifting focus to soybean and sunflower oil imports.

Shrikant Kuvlekar, an agricultural market system expert, confirmed that sufficient edible oil reserves and domestic oilseed refining will ensure stable prices during Diwali. “There is no possibility of shortage or price increase,” he stated. The country’s refining of oilseeds produced domestically will also support demand.

Consumers can breathe a sigh of relief as edible oil prices are expected to remain steady during Diwali. The cancelled import deals will not impact the festive season, and the industry is well-prepared to meet demand. With stable prices and sufficient supply, Diwali celebrations can continue without worrying about edible oil price hikes.

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