Olive oil to remain costlier for some time: IOA

Imported olive oil in India will remain costlier for the next couple of months as international prices have risen due to sluggish global output, a top Indian Olive Association (IOA) official said.
Retail price increase could hit Indian demand and affect import this fiscal, which is expected to be flat at last year's level of 11,106 tonnes, he said.
"Retail price of imported olive oil has gone up taking cues from the international market. There is up to 20 per cent increase in rates," Indian Olive Association (IOA) President Rajneesh Bhasin told PTI.
For example, the retail rate of extra lite olive oil has gone up to Rs 650 a litre from Rs 600 while pomace olive oil has risen to Rs 375 a litre from Rs 300, he said, adding that no correction in prices is seen till new crop comes next year.

"Next 5-6 months are going to be challenging," he noted.
The top three brands in the domestic market, which together control more than 70 per cent of retail sales, are Leonardo, Figaro and Borges (including Cesar). Some other prominent brands include RS, Bertolli, Del Monte, Fragata, Colavita and Athena.

On imports, Bhasin said the association was hoping 15-20 per cent rise in imports this year, but looking at global price trends, the shipments may be around last year's level.
In the first six months of this fiscal, the country has imported 6,271 tonnes of olive oil, compared to 5,313 tonnes in the year-ago period, he said.

Globally, the olive oil production in 2016-17 is expected to fall by 14 per cent to 27,13,500 tonnes as against 31,59,500 tonnes last year.
"The production has taken a hit due to severe climatic conditions in countries like Italy and Greece due to drought and pest infestation across Europe," he reasoned.
India largely imports olive oil from Spain, Italy and Turkey. While India consumes 17 million tonnes of edible oils, the share of olive oil is only 0.1 per cent. More than 90 brands are competing for such a small share of market.