Using sunflower oil is a perfect choice to maintain a healthy life and heart. As it is considered to be the non-volatile and extracted oil from the sunflower seeds, which makes it healthy to consume for daily lives. That’s why today, more people are consuming sunflower oil in their daily lives.
But today, we see there are many reasons due to why the prices of sunflower oil are being meant to rise. This not only provides a personal impact to a person but also on the country as a whole. So some of the main aspects which are responsible for increasing prices of oil are stated below.
- Dependent On Imports
As of today, the prices of edible oils are increased tremendously for about a year now. As our country is totally dependent about 60% on imports for its edible oils, which is only about 13 million tonnes from the total tonnes of 22 million.
And out of total edible oils, which come through imports, sunflower oil accounts for 15% of the total imports. As our country is overall dependent on the imports of sunflower oil, and due to wars or other economic crises, its prices keep rising.
- Demand Is Inelastic
As in our country, there is no perfect demand related to the consumption of sunflower oil. Our country consumes sunflower oil of around 200,000 tonnes in a month. Different regions require different demands regarding the usage of oil.
As in India, most of the oil is consumed in the western and southern parts of the country. Different places have different requirements when it comes to oil as there is inelastic demand for the availability of oil, which leads to an increase in its prices.
- Russia-Ukraine War
This is the most current and important concern in our world today. Due to the war, it only impacts the overall economy but also a life of a household budget. As whenever it comes to a war-like situation in any part of the world, the prices of many items tend to rise.
And when it comes to sunflower oil, you will be surprised to know that about 60% of the sunflower oil globally is being produced and exported by the combination of both Ukraine and Russia. So due to the war situation, the prices tend to increase throughout the country.
There are many reasons which are placed in order to raise the prices of edible oil and especially sunflower oil. In order to get the full details regarding further elements, you can visit the website S Chronicles.This will help you to know about its overall impact on the economy.
As per some of the reports, there is a core demand regarding the consumption of sunflower oil in the country. This demand cannot get replaced with any other type of edible oil, so this also makes it an increasing demand in the market, which affects to rising of its price in the economy.