Tariff war eases edible oil prices

One of the few positives of US President Donald Trump's sweeping tariffs on foreign trade partners is the drop in landed price of key edible oils in India in the last few weeks.

- SANJEEB MUKHERJEE & SUBHAYAN CHAKRABORTY

Ever since the Trump administration hiked tariffs on imported items earlier this month, the landed price of palm oil in India, both in crude and refined forms, has softened by almost 7-8 per cent, trade data suggests. Landed price of crude soybean oil, the other major variety of edible oil imported by India, has also dropped by almost $48 per tonne between April 11 and 21. So much so, the premium that soybean oil was commanding over palm oil for some time till the middle of last year has all but vanished.

In fact, as on April 21, the landed price of crude palm oil and crude soybean oil was almost identical, according to trade data. This could have an impact on India's edible oil markets and food inflation as well, as the country is a major consumer of edible oils. Oils and fats have a 4.21 per cent weightage in India's rural inflation basket and 2.81 per cent in the urban consumer price index.