Edible oil price may rise 20% by Diwali

The prices of all edible oil varieties are likely to surge 20 per cent by Diwali on festival demand and tight supply.

Generally, consumer demand multiplies during festivals such as Diwali, Dussera and Eid, which continues till the new year. Hence, prices that are hovering currently at their respective lows, would perk up, said H C Virmani, managing director of Dhara Vegetable Oil & Foods.

The prices of India’s one of the most sensitive import-dependent commodities nosedived in the global markets by 25 to 30 per cent in the last four to five months on falling purchasing power of consumers. But, the prices have again started rebounding especially in two leading trading markets, Malaysia and Indonesia, on spiraling orders from India.

“The output is likely to decline in Malaysia during the upcoming 2008 season. But, the demand is expected to surge from biodiesel sector and possibly a resumption of the dollar-led upturn in commodity prices. Therefore, we anticipate the prices of all edible oils would look up,” said Mitesh Saiya, Kantilal Laxmichand & Co, a local trader.