BHUBANESWAR : The escalating conflict in West Asia has begun to impact edible oil market in the state with prices rising sharply, largely driven by hoarding and profiteering by some wholesalers and retailers.
Refined vegetable and seed oils have become costlier by `10-`20 per litre, mustard oil by `8-`10 per litre while palm oil prices have gone up by around `5 per litre in two major markets of Cuttack and Bhubaneswar. Traders attribute the sudden spike to disruption in the supply chain, rising freight costs and concerns over potential blockades along key global shipping routes.
However, Odisha Byabasayee Mahasangha, the apex commodities traders body of the state, has asserted that there is sufficient supply of edible oil and the steep price hike is not justified by market fundamentals.
Mahasangha general secretary Sudhakar Panda said the actual increase in wholesale prices is minimal but some traders might be charging significantly higher rates at the retail level. There has been only a marginal increase of around `5 per litre in the wholesale market but some retail traders are charging up to `20 more per litre for popular refined oil brands, he said.
“There is enough stock of edible oil to meet the state’s requirement for the next 15 to 20 days. This is not the time for traders to keep a profiteering motive,” Panda warned, pointing to the role of a handful of major importers in influencing market prices.
“There are five to seven major importers of edible oil who have formed a kind of syndicate. It is for the central and the state governments to verify their stock position and the landing cost of their imports,” he said.
Govt should take urgent action
Panda added that strict monitoring by the government could stabilise prices and ensure a smooth supply of edible oil. Responding to concerns over hoarding, Panda said there is currently no limit on the quantity of stock traders can hold, which creates scope for market manipulation. “If any trader is hoarding stock and selling at higher prices, the government must initiate action,” he said.
The state depends wholly on imported crude edible oil processed by domestic refiners, making retail prices sensitive to both global market trends and domestic trading practices.
While global factors such as rising freight costs and geopolitical tensions have created volatility in international markets, the local price escalation is being driven primarily by hoarding and speculative trading rather than actual shortage. However, other essential items like rice, wheat flour, semolina and pulses have remained unchanged.
So far, no official comment has been issued by the state government regarding the price rise in edible oil in Odisha.
