In further bad news for kitchen budgets, officials said the price of sunflower oil marketed by the government might increase by Rs 5 to Rs 10 in the coming months. Krishna Das, manager, Andhra Pradesh OilFed, said prices will not come down till December. “Lack of domestic sunflower production and power crisis, among other factors, have led to this rise in prices,” Mr Das said. “Till December, we might see a cumulative hike of Rs 5 to Rs 10,” he added.
Sunflower oil has already become considerably dearer in recent months, with the average price increasing by about Rs 1.60 in the last one month, to peak at Rs 81.34 per litre. Groundnut oil prices have also risen, though at a relatively slower rate of 50 paise over the last month. According to officials, groundnut acreage has also decreased, sown on only 75 per cent of the season’s normal so far.
Private edible oil marketing companies, meanwhile, said oil price is primarily controlled by global conditions, adding that prices are expected to increase in face of the global drought situation. “Of late, there has been a decrease in acreage of sunflower. But the domestic produce won’t have much impact on the prices,” said P. Chandrasekhar Reddy, VP, Gemini Edibles and Fats. Sunflower has so far been sown on just 16 per cent of the season’s normal, and there will no more sowing this Kharif season.