In a bid to tame the soaring prices of edible oils, the Central government on Tuesday has allowed duty-free import of 20 lakh tonnes of crude soyabean and crude sunflower oil for the current and next fiscal year. The local prices of edible oils have been over the roof in the recent months. The prices of sunflower oil in retail markets have surged by ₹39 per litre in the past three months. This has impacted the household budgets of the urban population more as a higher share of them prefer refined oils compared to the rural parts. The local prices of edible oil are vulnerable to changes in international markets given India’s high reliance on imports. In 2019-20, 56% of the domestic edible oil demand was met through imports. However, Russia’s invasion of Ukraine and Indonesia’s policy flip-flops have left India scrambling for alternatives.
Preferred oil
The chart shows the type of oil used, as a share of the total edible oil consumed in rural and urban India. In urban areas, refined oil, which includes sunflower and soyabean oil, was widely consumed (47%). On the other hand, mustard oil was mostly preferred (45.1%) in rural areas, according to an NSS report on household consumption of various goods and services (2011-12). Hover over the chart to find the exact figure
