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Cooking oil prices expected to continue skyrocketing

• There is currently very limited prospect of cooking oil prices coming down.
• Russia and Ukraine produce most of the world’s sunflower which is supplied to Africa but both countries have banned most exports.
• The move will put upward pressure on prices on the local market.

Crushers and Edible Oil Refiners Association of Zambia (CEDORA) says cooking oil prices on the local market are not likely to reduce soon because oil seed production was already down due to weather issues before the Russia’s invasion of Ukraine.
Association President Aubrey Chibumba told Money FM News in an interview that Russia and Ukraine produce most of the world’s sunflower which is supplied to Africa with most of its wheat and fertiliser requirements but both countries have now banned most exports.
Mr. Chibumba said this means that no edible oils, fertiliser and wheat are coming out of the two countries, hence the move will put upward pressure on prices on the local market.
“There is currently very limited prospect of cooking oil prices coming down because oil seed production was already down due to weather issues before the European War. Between Russia and Ukraine they produce most of the world’s sunflower, supply Africa with most of its wheat and fertiliser requirements.”
“Both countries have now banned most exports so this means no edible oils, fertiliser and wheat are coming out of there. This will put upward pressure on prices,” Mr. Chibumba noted.
He explained that the new cultivation is supposed to start this month with harvest in August, but that if the war continues, Zambia should expect more challenges in sunflower production and higher prices in cooking oil prices in 2023.
And Mr. Chibumba stated that the country’s agriculture will be seriously challenged if Zambia is unable to get fertiliser for the 2023/2024 season, which may result in continued domestic shortages.
“Our short term objective is to ask GRZ to waiver VAT on cooking oil in the short term measure. We are also advocating for increased local production of oil seeds to insulate us from these international price effects. So the risk is that prices of cooking oil will remain high up until next year,” he added.
2 liters of cooking oil is currently trading between K95 and K110 depending on the brand while 5 liters is selling between K275 and K300.

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