In India, mustard oil accounts for about 40% of the total amount of edible oils. The oils are grown in various northern states, including Rajasthan, Haryana, MP, Gujarat, and UP. Last month, retail prices for packed mustard oil increased by more than 50%, and the price of other edible oils such as Sunflower and Palm oil soared by up to 60%. What’s behind the rise in prices? Several factors, including government intervention, are at play.
The first reason is that the government has banned the import of edible oil from Malaysia, which has a direct impact on the price of mustard oil in India. Another reason for the rise in mustard oil price is that the Indian government has banned the mixing of any oil with edible mustard oil. The government may be purposely letting prices rise and have a higher impact on the economy than it otherwise would. Ultimately, this has led to increased demand and higher prices for edible oils in India.
Another factor is that the global crisis is having a direct effect on India’s demand for edible oils. Inflation has pushed up prices for many oils, including mustard. While the price of sunflower oil and soya oil has fallen, that hasn’t stopped the rise in mustard oil prices in India. And as long as the conflict continues, the prices of edible oils will rise. If you’re concerned about the future price of your cooking oil, you should consider changing to a higher quality product, like extra virgin olive oil.