Imports of edible oil &pulses to cost more

KOLKATA: Edible oil and pulses imports are set to become costlier as the rupee has weakened against the dollar over the last few weeks. Prices of these two essential commodities may witness an upward revision in the domestic market this winter. Prices of soft oils such as soya bean oil and sunflower oil are expected to go up by Rs 2-4 per kg from December.

Pulses prices may also follow a similar price movement.

“In the last one month, prices of soya bean oil have increased by Rs 6 per kg due to the volatility in the exchange rate. The rupee, which was at 52-53 level against the dollar in the beginning of the month, has depreciated to 56 level in recent weeks. Our calculations have gone haywire. We have already increased prices by Rs 2-3 per kg and there will be another Rs-2 rise within the next one week,” said Angshu Mallik, COO of Adani Wilmar, which markets oil under the Fortune brand name.

Mallik added that though there has been a good crop this year, it will not be enough to meet the domestic demand.

“Imports are bound to increase in the current oil marketing year (November 2012 - October 2013),” he said. In fact, India has imported 10 million tonne of edible oil in the previous marketing year, which is almost a 20% increase over the last year.

Though palm oil is cheaper in the market, it solidifies during winter. Consumers have to depend on soft oils such as soya bean oil, sunflower oil and mustard oil.

“Sunflower oil has become costlier by $30 -$40 per tonne as global supply has dwindled by 1.3 million tonne. Sunflower oil has become costlier than soya bean oil and therefore prices at the retail end will also go up by Rs 2-4 per kg shortly,” said GG Patel, partner, GGN Research Company, which deals with agro commodities.