67% households are coping with edible oil price rise by drawing down from savings, shows survey
The prices of edible oil have risen by 50%-70% since the first Covid-19 case was detected in India in January 2019, said the survey by website LocalCircles.
As the prices of edible oil have increased exponentially in India, 24% of households have cut their consumption while 67% are paying for the product by dipping into their savings and reducing other expenses, a survey has found.
The survey was conducted by a website LocalCircles, which describes itself as a community social media platform that allows citizens and small businesses to discuss policy matters. The platform received 36,000 responses for its survey on edible oil consumption from 359 districts.
LocalCircles said that edible oil prices have increased by 50%-70% since the first case of the coronavirus disease was detected in India in January 2019. For instance, the survey said that the price of sunflower oil jumped from Rs 98 per litre in mid-February 2019 to between Rs 150 and Rs 180, depending on the brand of the product.
The survey also found that 29% of the households were opting for lower quality edible oil than they usually consumed due to the rising prices. It said the downgrading of edible oil could lead to health risks in the long run such as thyroid, stomach cancer and weaker intestines.
The survey said that the increase in edible oil prices were due to unfavourable weather conditions in major-oil exporting countries and the coronavirus pandemic, among other factors.
Citing media reports, the platform said that India imports about 85% of soybean oil from Argentina and Brazil and 90% of sunflower oil from Russia and Ukraine. It said that Indonesia and Malaysia are major exporters of palm oil.
The survey said that the Union government had slashed prices of the edible oil six times last year but the price surge still “continues to upset household budgets and consumption patterns”.
It said that central government reduced agriculture cess on crude palm oil in February from 7.5% to 5%. LocalCircles said that the government also slashed basic duty on crude palm oil to 12.5% from 17% and on crude soybean and sunflower oils to 17.5% from 32.5%.
“While these moves have provided some relief, more relief needs to be given,” it said. “In addition, practices like black-marketing, hoarding, and unfair trade practices need to be kept in check by enabling consumers to report and act on them.”
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