Bumper crop may pull down olive oil prices by 20 per cent

NEW DELHI: Retail prices of olive oil in India are expected to fall by up to 20% due to a likely bumper crop in some key producing countries, particularly Spain, marketers such as Borges and Del Monte have said. “The promotion in retail for olive oil will go up and prices will go down by 15% to 20%,” Rajneesh Bhasin, MD at Borges India, said. Olive oil prices had spiked up to 50% last year due to crop failure in olive growing countries and an increase in import duties. Marketed as a healthy oil, olive oil consumption in the country is currently about 12,000 tonnes. Retail prices for refined oil at present range from Rs 500-700 a litre while for extra virgin oil, it’s over Rs 800.

Bhasin, who is also the president of India Olive Association, said firms will pass on the reduction in prices to consumers by end of September or beginning October.

Leading brands in organised retail include Borges, Cargill’s Leonardo, Field Fresh’s Del Monte and Figaro. As per the industry, in the April to June quarter, imports of olive oil stood at 3,104 tonnes, 20% higher than the year-ago figure of 2,583 tonnes.

Yogesh Bellani, CEO at Field Fresh Foods, said olive crop in Spain, which caters to 60% of India’s demand, was looking better than the previous year and they were watching Italy and Greece crop which were not looking good. “Prices correction might start taking place by November-December, reflective of a good crop in Spain,” he said.

Siraj Chaudhry, chairman of Cargill India, said world over the oil crop looked good, including Spain and Greece. “We are seeing a pickup in demand and consumption in the country. Now, we want prices to be lower to increase consumption ,” he said.

Domestic producer Raj Olive Oil — a PPP between Rajasthan government, Pune-based Finolex Plasson Industries and Indolive Industries of Israel — looks to sell 12 tonnes of olive oil in domestic market through auction.