Rising Olive Oil Costs Due to Drought in Spain
The price of a liter of olive oil is set to double, Olive Oil Prices going from Rs 850 per liter to Rs 1,500 per liter. This increase in cost is primarily due to a rise in prices at the source.
Current Olive Oil Prices
Olive oil prices have already risen to Rs 1,100 per liter from their previous level of Rs 850 per liter. The more affordable olive pomace variety now costs Rs 800 per liter, compared to its earlier price of Rs 400-500 per liter.
Reasons for the Increase in Olive Oil Prices
- Drought in Europe: Olive oil prices have surged due to two consecutive years of drought in Europe, with Spain being a major cultivator of olives.
- Euro Currency Value: The value of the euro currency has risen by 12-13%, contributing to the overall price increase.
Impact of the Price Hike
Importers are now paying a duty of 40-50% on the elevated price. This rise in prices affects not only consumers but also various industries that use olive oil as an ingredient.
Unfortunately, olive oil prices are not expected to decrease in the near future, according to importers. Prices have already risen by 50-60% across the board.
India’s Olive Oil Imports
India imports over 13,000 metric tonnes of olive oil, with the majority coming from Spain and Italy. Spain’s olive oil production has significantly decreased in the 2022-23 oil season.
Olive Oil Theft in Spain
The significant price increase in olive oil has led to various incidents, including theft and fraudulent sales. In Spain, approximately 50,000 liters of extra virgin olive oil worth 500,000 euros were stolen from a mill in Cordoba. Reports also indicate a rise in olive fruit theft in Spain during the 2022-23 season, totaling around 259,000 kg.
Consumers and industries relying on olive oil should be prepared to face higher costs for this premium edible oil.