Original content
During W3, India's mustard oil prices saw an 18.54% YoY decline, reaching USD 1.48/kg compared to USD 1.82/kg in 2023. Although there was a slight increase from the previous week, the 2023 mustard oil price ranged significantly lower than the 2022 range. The global decline in edible oil prices has created challenges for domestic oil markets, impacting local farmers and mills, as the MSP for mustard oil is higher than imported oils, leading to increased pressure and market complexities.
During W3, India's mustard oil prices experienced an 18.54% year-on-year (YoY) drop, reaching USD 1.48 per kilogram (kg) compared to USD 1.82/kg in 2023. Despite that, prices showed a slight increase from the previous week. Notably, the mustard oil price ranged between USD 1.4 to 1.82/kg in 2023, significantly lower than the 2022 range of USD 1.74 to 2.24/kg.
The decline in global edible oil prices has impacted the domestic oil market, leading to increased pressure on local oilseed farmers and oil mills. The Minimum Support Price (MSP) for domestic mustard oil is USD 1.50 to 1.56/kg, making them more expensive than imported oils. This situation has resulted in challenges for farmers who are forced to sell their products below fair prices, and oil mills are struggling to compete with cheap imported oils, affecting overall market dynamics. Despite a reduction in soft oil imports in the last three months, the continuous drop in global edible oil prices has intensified concerns for farmers.
Trade4go
Jan 19th, 2024
