`Olive Oil Prices in India Moving Sharply Higher - Olive Oil Times

Olive Oil Prices in India Moving Sharply Higher

Jan. 18, 2013
Vikas Vij

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The Indian Olive Association says olive oil prices in the inter­na­tional mar­ket have gone up by more than 50 per­cent over the last six months.

With drought con­di­tions loom­ing over Spain, which is the largest olive oil exporter to India, its olive out­put is expected to go down by 40 to 50 per­cent this year. Spain accounts for more than half of India’s imports, and the weather in Spain can pro­foundly effect the prices of olive oil in the Indian market.

An analy­sis of the raw mate­r­ial costs on the com­mod­ity exchanges of Italy and Spain reveals that the price of pomace oil has gone up by 52 per­cent since July last year, while the prices of refined and extra vir­gin olive oil have increased by 48 and 33 per­cent respectively.

In addi­tion to the rise in input costs, the weak­en­ing Indian cur­rency against the euro, and an increase in the costs of pro­cess­ing and trans­porta­tion have put pres­sure on Indian olive oil importers to increase push prices higher.

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The Indian Olive Association antic­i­pates a price increase of at least 35 to 40 per­cent in the Indian retail mar­ket. Indian olive oil com­pa­nies are likely to pass on the addi­tional price bur­den to the con­sumers either in one adjust­ment or in a series of steps.

Leading brands in India such as Leonardo and Borges have already increased prices in the last few months. However, a larger price is in the off­ing. V.N. Dalmia, President of the IOA, says: There is tremen­dous pres­sure on com­pa­nies to pass on the costs. Prices could go up by about 60 per cent by March as we don’t have any choice.” Dalmia also expressed appre­hen­sions that an extra­or­di­nary price hike could hin­der growth in olive oil con­sump­tion in India.



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