Prime Minister Narendra Modi advised people to avoid obesity in ‘Mann Ki Baat’ on Sunday. He said that reducing edible oil consumption by 10% can help prevent obesity to a great extent. PM Modi also mentioned that obesity cases have doubled in recent years. After his advice, the shares of edible oil companies saw a reaction on Monday.
Impact on Oil Company Shares
1. Adani Wilmar Ltd
This company produces edible oil under the brand name Fortune. On Monday, its stock rose by about 1%, reaching RS 262.95. The Adani Group has announced plans to exit Adani Wilmar. In the last month, the stock has gained more than 4%, but it remains far below its 52-week high of RS 408.70.
2. Patanjali Foods Ltd
Baba Ramdev’s company also sells edible oil. On Monday, its stock declined by 1.51%, closing at RS 1829.65. Over the last month, there has been negligible growth in its stock. Its 52-week high is RS 2030, meaning the stock is still below its peak level.
3. Marico Ltd
Marico sells edible oil under the Saffola brand. On Monday, its stock dropped by 0.49%, closing at RS 621.35. Over the last month, it has fallen by nearly 7% and remains below its 52-week high of RS 736.10.
4. ITC Ltd
ITC sells edible oil under the Sunrise Pure brand. On Monday, its stock rose slightly by 0.21%, closing at RS 401.85. However, in the last month, it has declined by about 9%. The stock remains significantly below its 52-week high of RS 500.
Will It Really Benefit Middle-Class Kitchens?
PM Modi has suggested a 10% reduction in edible oil prices to help combat rising obesity levels. This move is expected to have a significant impact on middle-class kitchens, where edible oil is a staple ingredient. While the price cut could ease the financial burden on households, questions remain about its long-term effect on oil companies and consumer habits. The reduction may lead to lower grocery bills, but its impact on the overall market and cooking preferences will unfold over time.