ET Markets
12,248.2567.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

Palm oil prices surge 40% in a year

Palm oil consumption is 40 per cent of the 23 million tonne consumption in the country.

, ET Bureau|
Dec 13, 2019, 11.25 AM IST
0Comments
Getty Images
palm-oil-getty
“While we say that consumers pay more, the silver lining is that farmers have begun getting more remunerative prices, with the rise in tariff on imported oils,” Mehta said.
A rise in the prices of imported refined palm oil, the widely-used cooking oil medium, has drilled a hole in the common man’s pocket. The wholesale price of RBD Palmolein, as it’s known, has jumped 39.96 per cent to $725 a tonne from $518 a year ago, data from trade body Solvent Extractors’ Association (SEA) shows. The corresponding rate in rupees is up 32.25 per cent (chart).

The reasons behind the rise are -- shift of palm towards making biodiesel in Indonesia and Malaysia, the chief exporters of RBD to India; lower to negative palm production growth in the two countries this year and higher consumption by China. However, recent measures by the government to provide impetus to domestic farmers and refining industry by imposing a 5 per cent safeguard duty on Malaysian RBD, apart from hiking duties on imported crude sunflower and soyabean oil in the past two years have enabled oilseed prices to quote at or above the MSP, giving some relief to farmers, said SEA’s ED BV Mehta.

“While we say that consumers pay more, the silver lining is that farmers have begun getting more remunerative prices, with the rise in tariff on imported oils,” Mehta said.

Palm oil consumption is 40 per cent of the 23 million tonne consumption in the country. The household use is relatively less compared with use in HORECA – hotels, restaurants and canteens.

Palm oil snip 1

Also Read

Govt puts restrictions on import of refined palm oil

Palm oil import duty reduction disappoints industry

Malaysia to buy more Indian sugar to resolve palm oil spat: Sources

$1.4 billion of Palm Oil is in the crossfire as Mahathir angers India

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service