There is bad news for housewives. They may find it tough to manage their monthly grocery bill from this month as edible prices are set to soar again by around Rs 3 per litre.
Cooking oil rates have already witnessed a rise of almost 25 per cent since last year. The prices rise is mainly attributed to the widening gap in demand and supply across the world. According to global market analysts, the consumption of edible oil for producing bio-diesel is aggravating the problem.
In India, where the annual consumption of edible oil is estimated around 12 million tonnes, over 45 per cent
of the demand is met by imports.
The rate of cooking oil around a year ago was between Rs 45-50 a litre and it has increased to Rs 55-60 per litre now. Apart from shortage in other countries, local production is almost stagnant for more than last seven years, which is causing a price rise in India.
According to Solvent Extractors Association of India office-bearers, following the shortage, prices are bound to increase further soon. Government policies have not been very encouraging for local producers. There is an urgent need to take measures in the direction so that edible oil rates are not affected.