This Diwali, illuminating your home will cost you a bomb

With prices of pulses having increased sharply, rising mustard oil prices is going to become the next serious concern for the people of Delhi and its neighbouring areas. In the last couple of weeks, the prices have witnessed a whopping 30 per cent rise in the retail market. The prices are expected to rise further due to the rise in demand during the Diwali festival and the upward trend will remain for some weeks as more festivals are to take place after that.

However, market analysts have claimed that hoarding at every level of supply and demand is the key reason behind the sudden spurt in prices as production of mustard has remained unaffected this year.

With demands of mustard oil going up these days, prices in the retail market has gone up from Rs 105 to 135 and is expected to touch Rs 150 in the coming days. Rates of cans, having capacity of 15 litre, have also registered a hike of Rs 250 and more. In some areas, oil of major brands is being sold at Rs 145 per litre which is a clear sign of the deepening crisis. Apart from this, prices of soybean, refined and other cooking oils have also seen a rise of up to 20 per cent and the soaring trend will continue according to analysts.

Analysts have also said that the prices would increase in the next few weeks when the demand usually goes up. 

“There is no scope of importing mustard oil. Though production is same this year, hoarding and stocking on large scales has worsened the situation. Ahead of the festival, the authorities generally crack down on hoarders but this time it appears that no action has been initiated. Following this, hoarders have stocked the item for cashing benefit during the peak days. 

“The agencies are claiming that the production of mustard oil has been less this year because of crop damage but it is not true as mustard crop comes before April while rains were witnessed in May,” said Dushyant Naagar, an oil manufacturer from West UP.

Another manufacturer, Dharmendra Malik, said that due to favourable weather condition, UP, MP, Rajsthan, Punjab, Andhra Pradesh, Gujarat, etc have recorded good production and even mustard farmers have supplied the item at, Rs 3,000 to 4,000 per quintal, but it’s unfortunate that consumers are purchasing the final product at higher rates. Even claims of a Union minister that soaring prices are a good sign for manufacturers are baseless as they are not getting the benefit of this. He said that the production of mustard may increase next year. 

“Rains in mustard growing regions have been very good this year and the chill during the last few days has increased moisture in the ground for the rabi season. The expectation of getting good returns may encourage farmers to grow more mustard,” Malik said.