Milk and Edible Oil Price Hike: The prices of milk and edible oil are skyrocketing across the country. Since June 2021, the price of milk has increased by ₹ 13 per liter. Apart from milk, dairy products like curd, paneer, and buttermilk are also getting expensive. At the same time, the prices of edible oil have also increasing continuously since September 2023.

Their prices have increased by ₹ 10 to ₹ 20 per liter. However, there has not been much jump in the prices of pulses, fruits and vegetables, which has given some relief to the people. This situation is a big sign of rising inflation for the common man. In this article, we will discuss in detail everything from the RBI report to the reasons for price hike and future possibilities.

What does the RBI report say

According to the Reserve Bank of India (RBI), average inflation is under control, but the prices of some things are rising like fire. Especially, the prices of peanut, mustard, flax, and sunflower oil are sky-high. In the last year, the index of edible oil has jumped by more than 25 points. At the same time, the index of dairy products has also increased by 30 points.

However, the fall in the prices of grains, sugar, pulses, and vegetables has kept the spirits of the people high. This report of RBI presents a dual challenge: while the overall economy seems to be stable, the prices of some daily essential items are becoming uncontrolled.

Where did the prices increase and where did we get relief

Sunflower oil: ₹130 to ₹159.2/kg
Mustard: ₹152 to ₹170.8/kg
Peanuts: ₹182 to ₹190.4/kg

Pulses (prices stable)

Urad: ₹117/kg
Mung: ₹111.1/kg
Lentil: ₹87.7/kg
Gram: ₹86.3/kg

Why are milk and oil getting expensive?

Rising milk prices

  • Milk production decreases in summer, while demand increases. The milk-giving capacity of animals decreases in summer.
  • Storage and transport expenses of dairy companies also increase.
  • In 2022-23, 230.58 million tonnes of milk were produced in the country, but the per capita availability is only 459 grams/day, which is not in line with the increasing demand.

Rising edible oil prices

The trend towards pure oil: People are now prefer to buy pure oil (mustard, peanut) instead of refined, which has increased their demand.

Reduction in imports: Palm oil imports fell by 53% in April. Although India is still the 7th largest oil importer in the world, the reduction in imports has put pressure on domestic prices.

Rising consumption: Oil consumption was 8.2 kg/year in 2001, which is expected to increase to 23.5 kg in 2024. This rising demand is also pushing prices up.

Uncertainty in the global market: According to JNU professor An Kumar, the productivity of edible oil in India is low, and there is a lot of uncertainty in the global market, which may further increase prices if the supply chain is disrupted.

These factors together are causing a continuous increase in the prices of milk and edible oil.

Why are the prices of fruits and vegetables stable

This time the crop has been good, due to which the prices of grains and pulses are stable. In the summer season, the arrival of green vegetables and fruits increases, due to which the prices do not increase in the arrival season. Also, this time the government has kept sufficient stock of other edible items including onions. This is a big relief for consumers.