EDEN IAS

NEWS IMPULSE | EDIBLE OIL PRICES | 4TH SEPTEMBER 2021

Syllabus Section: Economy (GS Paper III)

Importance: UPSC Prelims and UPSC Mains

Why in News?

Soaring edible oil prices are likely to soften by December as international commodity futures show a declining trend.

About:

  • Average retail prices of major edible oils have risen by up to 48% over the last year.
  • Reason for surging the prices is:
  • Surge in global prices and
  • Lower domestic production of soybean, which is India’s largest oilseed crop.
  • Excessive buying of edible oil by China.
  • Many major oil producers are aggressively pursuing biofuel policies and diverting edible oil crops for that purpose.
  • Governmental taxes and duties 

Key Facts

  • India imports about 60% of its edible oil needs, leaving the country’s retail prices vulnerable to international pressures.
  • It imports palm oil from Indonesia and Malaysia, soy oil from Brazil and Argentina, and sunflower oil, mainly from Russia and Ukraine.

 

Edible Oils

  • Edible oil is a fatty liquid that is physically extracted from several vegetables and also some animal tissues
  • Primary sources of Edible oil (Soybean, Rapeseed & Mustard, Groundnut, Sunflower, Safflower & Niger) and secondary sources of Edible Oil (Oil palm, Coconut, Rice Bran, Cotton seeds & Tree Borne Oilseeds).
  • Recently the Government announced the National Edible Oil Mission- Oil Palm (NMEO-OP) to boost domestic oil seed production and make the country self-sufficient in cooking oils.

Source: The Hindu

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