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Prices and Inflation 173

2021-22 (Figure 9). In 2021-22 (April - December), its inflation has been 30.9 per cent, and
stood at 24.3 per cent in December 2021.

Figure 9: Inflation in 'Oils and fats' subgroup

40
50 Oils and fats
35 Oils and fats 40 Mustard oil
Inflation Rate (yoy) (per cent) 25 Inflation Rate (yoy) (per cent) 20 Refined oil [sunflower;
Groundnut oil
30
30
soyabean; saffola; etc.]
Ghee
20
10
15
10

5 -10 0
0 -20
Apr-17 Sep-17 Feb-18 Jul-18 Dec-18 May-19 Oct-19 Mar-20 Aug-20 Jan-21 Jun-21 Nov-21 Apr-17 Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 Apr-19 Aug-19 Dec-19 Apr-20 Aug-20 Dec-20 Apr-21 Aug-21 Dec-21

Source: NSO, MoSPI
Note: Item level indices for ‘mustard oil’, ‘groundnut oil’ ‘refined oil’ and ‘ghee’ were not available for March-May
2020.
5.16 India imports around 60 per cent of its consumption of edible oils’, and Palm oils (Crude
+ Refined) constitutes around 60 per cent of the imports of edible oils (PIB, 2021). As a result,
fluctuation in imports and international prices transmit to domestic prices of edible oil. The
current spike in prices of edible oils is mainly on account of high and increasing international
prices of edible oils. The rise in oils component of Food and Agriculture Organisation’s (FAO)
food price index from May 2020 onwards has been steep, and reached a 10-year high due to
robust global import demand amidst the shortages over migrant labour impacting production in
Malaysia (Figure 10; FAO, 2021).

Figure 10: FAO Food Price Index: Edible oils component

200
180
160

Index 140
120
100
80

60
Jan/2020 Feb/2020 Mar/2020 Apr/2020 May/2020 Jun/2020 Jul/2020 Aug/2020 Sep/2020 Oct/2020 Nov/2020 Dec/2020 Jan/2021 Feb/2021 Mar/2021 Apr/2021 May/2021 Jun/2021 Jul/2021 Aug/2021 Sep/2021 Oct/2021 Nov/2021 Dec/2021

Source: FAO