Due to the cost of palm oil, the common people will be hit by inflation, due to which they have been struggling for many months. With the start of the Russo-Ukraine war, the prices of many goods are skyrocketing. One can also add hard palm oil to it. Many everyday items in the house can be expensive.
Prices of edible oils may increase due to palm oil being expensive
An increase in the price of palm oil can be seen as the production has been badly affected due to excessive rains in the major producing countries. palm oil Production is expected to decrease in manufacturing countries, on the other hand its demand will remain strong in other countries. The use of palm oil is increasing rapidly in biofuel as well as in food, due to which its prices may increase in the coming time. There was a big increase in the price of oil in the month of March this year, but later it saw some decline. Now again the fear of inflation seems to be increasing.
Due to the increase in the price of palm oil, all types of edible oil will become expensive. Palm oil is used extensively to make edible oil. Similarly, other food items like biscuits, noodles etc. will also become expensive. This oil is also used in making soap. With palm oil becoming expensive, the prices of all these things can once again increase as seen a few months ago.
Due to the cost of palm oil, the common people will be hit by inflation, due to which they have been struggling for many months. With the start of the Russo-Ukraine war, the prices of many goods are skyrocketing. One can also add hard palm oil to it. The biggest concern is that due to decreasing production of palm oil and increasing exports, the stock of producing countries like Indonesia and Malaysia may decrease. In such a situation, the price of palm oil can increase rapidly.
Traders say that India has fixed the import rate of palm oil at $ 776 per tonne for the month of November. It also includes cost, insurance and transportation. India is the largest palm oil importer country in the world. Palm oil has been ordered for January delivery at $1010 per tonne. Here we are seeing the price going straight from 776 to 1010 dollars. But prices could rise further if Indonesia decides to reinstate the export tax.
Indonesia abolished the export tax in July as the price of palm oil saw a big drop due to rising stocks. In March, its price had reached 2010 dollars per ton. However, later it saw a sharp decline. Palm oil seems to be getting tough competition from soya oil, whose demand remains high in all the countries of the world. Despite the presence of many types of oil in the market, the demand for palm oil remains high. This is the reason why its price in edible oil keeps increasing from time to time.
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