The surge in inclement weather has led to a notable rise in inflation for both everyday kitchen essentials and premium superfoods favored by the affluent and health-conscious individuals. A combination of droughts in Europe and Bihar has triggered a staggering 80% increase in prices for olive oil and makhana (fox nut) within a year, with predictions of further escalation in the days ahead.
This week, Turkey, the world’s leading olive oil producer, implemented an export ban, exacerbating global shortages of olive oil and contributing to the maintenance of high prices. India, which relies entirely on imports to fulfill its olive oil demands, is also affected by this situation.
Since the onset of the Covid pandemic, Makhana, a traditional snack from eastern India made by popping water lily seeds, has gained widespread popularity among affluent consumers throughout the nation. However, in recent months, the prices of Makhana have surged by 70% at the factory gate due to the adverse effects of extreme heat, which resulted in the drying up of artificial ponds utilized for Makhana cultivation.
“Retail prices of olive oils in India have increased by around 70-80% YoY, while the prices have shot up by 20% in the last two months. The prices of extra virgin and extra light categories will go up by another 40% in the next two months, while the pomace category is stable for now,” said Akshay Modi, an office bearer of the Solvent Extractors’ Association.
On various online platforms, the Maximum Retail Price (MRP) for extra virgin olive oils from the top brands ranges between INR 1,000 and INR 1,400 per liter.
India imports about 13,000 tonnes of olive oil of all grades every year. Global olive oil prices will remain firm as supplies from Turkey have stopped. “Imports have remained flat for the last few years due to high import duty and increasing prices at origin,” said Modi.
Makhana gained immense popularity as a superfood after 2017 when seed prices skyrocketed, reaching a historic high of INR 22,000 per quintal. The significant returns enticed numerous paddy farmers to venture into Makhana cultivation in artificial ponds, effectively meeting the rising demand. However, the scenario changed drastically as demand declined, causing seed prices to plummet to a mere INR 3,500 per quintal in November of the following year.