Rising Prices of Palm and Soy Oils Drive Indian Consumers to Mustard Oil
Costlier palm, soy oils push Indian consumers towards mustard oil
The Economic TimesImage: The Economic Times
Due to escalating prices of palm and soybean oils linked to the West Asia conflict, Indian consumers are increasingly opting for mustard oil, which has seen a 25% rise in domestic sales. This shift is attributed to the first instance of mustard oil being priced lower than palm oil, alongside record domestic production.
- 01Palm and soybean oil prices have surged due to the West Asia conflict.
- 02Domestic sales of mustard oil increased by 25% in March and April compared to last year.
- 03Mustard oil consumption rose by 1.5 lakh tonnes during the same period.
- 04Mustard oil prices are now lower than palm oil prices for the first time.
- 05Record domestic production of mustard supports the rising demand.
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The ongoing conflict in West Asia has resulted in a significant increase in the prices of palm and soybean oils, prompting Indian consumers to shift towards mustard oil. Traditionally considered more expensive, mustard oil has seen a 25% increase in domestic sales during March and April compared to the previous year, with consumption rising by 1.5 lakh tonnes. Experts attribute this trend to the diversion of palm and soybean oils for biofuel production, which has inflated their prices internationally. Additionally, the depreciation of the Indian rupee has made imported cooking oils more expensive. For the first time, mustard oil prices are slightly lower than those of palm oil, encouraging consumers to choose mustard oil. This shift is further supported by record domestic production of mustard, which has led to increased availability of raw materials for crushing mills. Currently, the price difference between soybean oil and mustard oil has narrowed from ₹10-12/kg to ₹3-4/kg, while palm oil is now priced higher than mustard oil by approximately ₹2-3/kg.
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The shift towards mustard oil could lead to lower cooking oil expenses for Indian households, as mustard oil becomes a more affordable option compared to imported oils.
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