Olive oil prices to remain stable; not to rise

Tag : Oil Sunflower Seed

New Delhi: The Indian Olive Association (IOA) said Monday the product'sprices would remain stable and, contrary to expectations, would notfall as a result of the government's reduction of import duties to7.5 per cent from April 1.
In April, the IOA had stated that olive oil prices were expected tofall by 10-15 per cent on fresh imports after duty reductionprovided exchange rates remained stable.
However, "a phenomenal rise in the exchange rate of the euro hasprevented olive oil companies from reducing prices," IOA presidentV N Dalmia said in a statement Monday.
"Exchange rates to the rupee today hover above Rs 68, with banksprojecting Rs 70 as conceivable in the near future," he added.
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In March and in early April, the exchange rate was about Rs 63. Ayear ago, the euro was worth Rs 55. A rate of Rs 70 implies a 11per cent rise since April 1.
"If this rate of rise continues, we may have to think of increasingprices," Dalmia said
On the positive side, he pointed out, stability in olive oil priceswas a 'blessing' compared to the rapid rise in prices of otheroils.
Olive oil, once as much as 10 times the price of sunflower oil, istoday less than three times the price. During the last year,groundnut oil has increased from Rs 89 to Rs 109, corn oil from Rs81 to Rs 106, mustard oil from Rs 57 to Rs 80, sunflower oil fromRs 63 to Rs 78 per litre and soya oil from Rs 52 to Rs 75.
"The price differential of olive oil has reduced dramatically withthe rise in prices of other oils," Dalmia said, adding: "Olive oilcompanies have held the price line despite inflationary trends."
"With the vast health benefits inherent in olive oil, the reducedprice differential presents great value for consumers to securequantum improvements in their health," Dalmia added.