Why did edible oil prices in India go up so quickly?

TinTinSnowy said:
Fortune is the market leader with more than 20% market share. Ruchi Soya also have significant control over the market.
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I don't know where does the percentage comes from, may be percentage of branded oil. My state Gujarat has one of the highest per capita consumption of oil in Country. And market is totally dominated by local players. We consume groundnut oil predominantly, A few use cotton seed and sunflower. Adani has presence in Sunflower only. I myself have never bought anything from other than local players. A very miniscule percentage of people I know may consume Fortune etc.

If you people were to look in your state, you will most probably find local players dominating. Mostly upper middle class and above would be consuming Fortune etc.
 
Just sharing a thinking point. Mustard was sold last year average price of 5000 per ton. From 1 ton of Mustard, average yield of oil was 40 litres. Thus per litre price being 125. Now start adding to it "value addition" cost i.e. Manufacturer's margin, transportation cost(which goes up aa fuel prices go up), dealer margin etc. After all this, you get Mustard Oil with price tag of 200+ depending upon where you buy it from and in what kind of packaging.
Thus in present scenario, I highly doubt Demand has anything to do with inflation in oil prices.
 
Kevin Lane said:
I don't know where does the percentage comes from, may be percentage of branded oil. My state Gujarat has one of the highest per capita consumption of oil in Country. And market is totally dominated by local players. We consume groundnut oil predominantly, A few use cotton seed and sunflower. Adani has presence in Sunflower only. I myself have never bought anything from other than local players. A very miniscule percentage of people I know may consume Fortune etc.

If you people were to look in your state, you will most probably find local players dominating. Mostly upper middle class and above would be consuming Fortune etc.
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Branded market is no small with Adani Wilmar & Ruchi Soya raking in 50,000+ crores of sales together from oil. May be people in Gujarat buy unbranded oil mostly. People here in Maharashtra buys branded oil mostly. It is very clear and evident that the Government is doing everything it can to favor 2 people in every possible industry.

Telecom Industry - Drived down their own companies (BSNL & MTNL), gave Jio the freedom to break rules which allowed them to give free services for longer than the allowed period, pushed down other players in law suit & AGR income. Now VI is also on the path to declare bankruptcy. Banks, Indian Economy and Employees will face the wrath.

FMCG Delivery - Slapping Anti trust and various regulations on Amazon, Flipkart, etc even leading to closure of Cloudtail India. Just to benefit Jiomart.

Aviation/Ports/Heavy Industries - Forcing Banks to give more loans to Adani inspite of such a stretched balancesheet. No bank in their right senses will give any fresh loan to any Adani Group Company. How come they are winning every tender after tender? They are also not taking management of won airports and making government bear losses. They will take control when things return to normalcy. Had this been any other company/group then government would have enforced the rules.

I can go on and on as I close track many industries and their variables. This Gujarati Chor Company will be harming the economy in the long run. Previous Government used to take bribes and help every body. This government is just limited to 2 people who control the back end and front end have puppets claiming to running the show.
 
TinTinSnowy said:
Branded market is no small with Adani Wilmar & Ruchi Soya raking in 50,000+ crores of sales together from oil. May be people in Gujarat buy unbranded oil mostly. People here in Maharashtra buys branded oil mostly. It is very clear and evident that the Government is doing everything it can to favor 2 people in every possible industry.

Telecom Industry - Drived down their own companies (BSNL & MTNL), gave Jio the freedom to break rules which allowed them to give free services for longer than the allowed period, pushed down other players in law suit & AGR income. Now VI is also on the path to declare bankruptcy. Banks, Indian Economy and Employees will face the wrath.

FMCG Delivery - Slapping Anti trust and various regulations on Amazon, Flipkart, etc even leading to closure of Cloudtail India. Just to benefit Jiomart.

Aviation/Ports/Heavy Industries - Forcing Banks to give more loans to Adani inspite of such a stretched balancesheet. No bank in their right senses will give any fresh loan to any Adani Group Company. How come they are winning every tender after tender? They are also not taking management of won airports and making government bear losses. They will take control when things return to normalcy. Had this been any other company/group then government would have enforced the rules.

I can go on and on as I close track many industries and their variables. This Gujarati Chor Company will be harming the economy in the long run. Previous Government used to take bribes and help every body. This government is just limited to 2 people who control the back end and front end have puppets claiming to running the show.
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I was under impression that we were discussing oil prices and not "Gujarati Chors". In that case I won't partake further!
 
Kevin Lane said:
I was under impression that we were discussing oil prices and not "Gujarati Chors". In that case I won't partake further!
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The discussion is related to Oil Prices and this is highly related to the discussion. They are looting the country. Take a look at the biggest scamsters of India: Jatin Mehta (Su-Raj Diamond / Winsome Diamonds), Nirav Modi, Mehul Chowkshi (Gitanjali), Nitin Sandesara (Sterling Biotech), Harshad Mehta, Ketan Parikh, etc.

Many of the above names are related to A+A family directly or indirectly. You can find the family tree via a simple google image search. ;)

Interestingly no major asset recovery has been done in all of these cases whereas full money with interest will be recovered in Vijay Mallya Case as his shares are seized with the government.
 
LaatSahab said:
Just sharing a thinking point. Mustard was sold last year average price of 5000 per ton. From 1 ton of Mustard, average yield of oil was 40 litres. Thus per litre price being 125. Now start adding to it "value addition" cost i.e. Manufacturer's margin, transportation cost(which goes up aa fuel prices go up), dealer margin etc. After all this, you get Mustard Oil with price tag of 200+ depending upon where you buy it from and in what kind of packaging.
Thus in present scenario, I highly doubt Demand has anything to do with inflation in oil prices.
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What brand of mustard oil are specifically referring to (if any) because I want to check their price history.
 
LaatSahab said:
Just sharing a thinking point. Mustard was sold last year average price of 5000 per ton. From 1 ton of Mustard, average yield of oil was 40 litres. Thus per litre price being 125.
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The material left after extracting oil is quite valuable, its used as food for cattle and thus bring down the cost price of oil.
 
No specific brand, just talking in general terms, based upon what I have seen around me. As for "Khal", oil millers sell them off separately to feed stores so don't have any credible data or information about that subsidising the cost of milled oil.
 
LaatSahab said:
No specific brand, just talking in general terms, based upon what I have seen around me. As for "Khal", oil millers sell them off separately to feed stores so don't have any credible data or information about that subsidising the cost of milled oil.
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But it does na. Mustard DOC is costing nearly 30/kg to end user this year instead of the regular 18-20. So you have to take the price of that into account as well.
 
just offbeat example..

here on TE sellers of old hardware (hiding old invoice etc) and sell product at inflated price and gave 100+ excuses for their investment etc. and proved that they are correct to sell old hardware at 50% of current inflated market price and keep maximizing their profits .. so.... on same ground why blame other offline/online sellers if they increased price for new/fresh/pure under warranty products?
 
You should be wondering HOW oil is so CHEAP actually. Go see the prices of the actual ingredients and the price of oil per liter! Be it Mustard, Groundnut, seasame, or soya bean etc
 
NHS2008 said:
You should be wondering HOW oil is so CHEAP actually. Go see the prices of the actual ingredients and the price of oil per liter! Be it Mustard, Groundnut, seasame, or soya bean etc
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The quality of ingredients in both differ. The lowest quality goes into production of oils. After all oil producers are entrepreneurs and won’t be doing it for loss.
 
Thought restrictions on Palm oil from Malaysia might have triggered a part of price increase.

Palm oil might be used by manufacturing industries apart from consumption, like soap, etc. ? So, now they have to use other edible oils which are locally available ?

Farmers in sourcing geographies suffered from Covid19 and lock down restrictions, increased taxes, tax auditing, inflation in general so inputs are costly, transport and logistic costs during Covid19 lock-down situation...

FMCG product costs increased at least ~10% in developed countries too after Covid19, someone one was saying ~30%
 
Doesn't palm oil have a very bad reputation in general? I have a relative who loves oily food but swears by the "ill effects" of palm oil and doesn't use it anymore (it's been many years now).
I honestly don't know about the purity of oil but I do think that the lower priced ones will not be as healthy as the reputed brands. Unless it's all marketing and branding by the major players. I do want a decent mustard oil at a decent price. Btw note that I said mustard not soya or rice bran or palm oil.
 
Kaleen Bhaiya said:
https://twitter.com/x/status/1427936305682403331

www.livemint.com

Ramdev’s Ruchi Soya to start palm oil plantations in North East

Ruchi Soya which was taken over by Baba Ramdev’s Patanjali group has already done field surveys for the palm oil plantations which will be set up through contracts that guarantee farmers a buy-back by Ruchi Soya’s processing plants to be set up in those states
www.livemint.com www.livemint.com
Pick your poison!
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Been reading about it since 2016. When it comes to such "scheme" it's all just that, scheming and subterfuge, to create a mirage that yes they are doing something good whilst even the opposite of it isn't true either.
 
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