Edible Oil Prices Cut by 10% Good for Middle-Class Kitchens or Big Shaker in the Market?
In the recent Mann Ki Baat audio address, Indian Prime Minister Narendra Modi appealed to Indians to Edible Oil Prices Cut by 10% consumption as a countermeasure to fighting obesity. He affirmed that there were twice as many cases of obesity as there were a year or two ago and noted that food habit change is called for now. This was followed by a view and cut of edible oil stocks on Monday.
Stock Market Impact: Winners & Losers
- Adani Wilmar Ltd (Fortune Oil)
The stock appreciated 1 percent, closing at ₹ 262.95.
4 percent in the green with the monthly gain now, not close to a 52-week high of ₹ 408.70.
Possible exit by Adani Group from Adani Wilmar could be a concerning factor.
- Patanjali Foods Ltd
Stock down 1.51 percent to close at ₹ 1829.65.
Only slightly up in the last month, significantly below the 52-week high mark of ₹ 2030.
Future news will depend on consumer faith in Patanjali’s health-based marketing working for the brand”.
- Marico Ltd (Saffola Brand)
Stock down 0.49 percent to close at ₹621.35.
Has declined nearly 7 percent over a month, far from its 52-week high of ₹736.10.
Saffola’s heart-health positioning might mitigate the impact of the change in oil consumption habits.
- ITC Ltd (Sunrise Pure Brand)
The stock climbed 0.21 percent, closing at ₹401.85.
Down 9 percent in the last month, remaining well below its 52-week high of ₹500.
ITC should ride out the impact of this price change owing to the varied nature of the portfolio.
Will Price-Cutting Work in Favour of the Middle Class?
Reduced Kitchen Expenses
The 10 percent cut could definitely help put food on the table for families facing inflation and rising grocery expenses. It renders daily cooking less expensive.
Healthier Eating Habits
With rising obesity rates, this proposal marries health and the urge for lesser consumption of oil.
Trouble for Oil Companies
If the prices are set lower, edible oil-makers might be staring at depletion of profits, prompting a re-orientation in supply chains or starving costs.
Final Verdict: Wise Move or Risky Gamble?
While PM Modi’s plea for lower edible oil prices would bring economic relief and health returns to the households, manufacturers and fluctuations in the stock market are uncertain prospects.
Whether this will put Indians on the path to better health or make the edible oil market in trouble will be seen in the months to follow. Stay with us for updates.
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