How do fuel prices impact edible oil?
Mar 28, 06:03

Edible oil prices have shot through the roof. There are various reasons why this is happening, and one of the bigger ones is fuel-price rise. As crude oil prices climb, said Pushan Sharma, Director, CRISIL Research, there is a push towards biofuels, which are produced using oilseeds. This leads to a higher demand for oil seeds, which leads to a surge in price of edible oil. Indonesia, a significant exporter of palm oil to India, has mandated 30 percent of its production be used for biofuel. While Brazil, a large exporter of soybean oil to the country, has set 10 percent biodiesel-blending mandate for 2022.

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