Impact of Weaker Rupee on Consumer Prices

Cooking Oil Prices

Consumers are facing higher costs due to the depreciation of the rupee, with cooking oil prices increasing by about 5% recently.

• Cooking oils in Indian kitchens are 60% imported, making them susceptible to currency fluctuations.
• Retail prices of soybean, sunflower, and palm oils have risen by ₹5-6 per kg.
• Palm oil prices increased by 4.28% to ₹146/kg.
• Soybean oil prices rose by 5.4% to ₹135/kg.
• Sunflower oil prices climbed by 3.2% to ₹158/kg.
• Even locally produced oils have seen price hikes: 
  • Mustard oil went up to ₹166/kg from ₹163/kg.
  • Groundnut oil increased to ₹185/kg from ₹183/kg.
  • Cottonseed oil rose to ₹131/kg from ₹125/kg.

Impact on Exotic Fruits and Nuts

The cost of importing exotic fruits and nuts is increasing due to the weaker rupee, leading to expected price rises.

• Prices of imported fruits like kiwi, avocado, pears, and premium apples are set to rise.
• Imported avocados have increased by 22% to ₹440/kg from ₹360/kg since December.
• Price increases for imported apples and kiwis are anticipated by March.
• Premium apple prices have already risen by 8-10% in metro areas like Delhi and Mumbai.
• Exotic fruit prices are expected to increase by 10% to 15% soon.

Market Insights

• International cooking oil prices decreased in December, offsetting the rupee's depreciation.
• Recent recoveries in palm, sunflower, and soybean oil prices are due to reduced supplies and adverse weather conditions in major producing countries.
• Traders anticipate further price increases if the rupee depreciates more.