Are we getting adulterated oil?? After a research we think the answer is “Yes”


Peanut cost in online grocery stores (recognized to give most discounts) is above 120 per kg; if you purchase in bulk / from wholesale, it might be INR 80 per kg. In general, the oil extraction rate of peanut will be 35% to 45% i.e., 300-450 grams from one kg of peanuts depending upon the grinding technique (wooden or metal). Metal machines give higher yield as to increase they do mild heating. So the cost to extract 1 litter oil would be 180-200/kg. To the extracted oil from raw peanut, they have plant & machinery purchase & maintenance cost, labor cost, and they need to redeem from this only. Once fresh oil got produced, they have bottling cost, marketing cost, distribution cost, dealer/distributor, retailer margins, and company profits as well. When we calculate all this, the minimum charge of 1 litter peanut oil should be INR 250 per kg.

If we consider the prominent player of the industry i.e., fortune, they are giving Fortune Grounutt Activ Jar, 5L in INR 650 i.e., INR 130 per kg.

If this is the case for the peanuts, the same would be there in case of cotton, sesame, coconut, Rapeseed/canola, which we produce in the country and has a reasonable oil extraction rate from 35% to 60%. How about Rice and corn, which has a lesser oil extraction rate ?? Maybe it can be compensated as they are lower in pricing. The surprise factor is in sunflower, Safflower, Soybean; Do you think the pricing of these oils should be in line with these oils??

Are-we-getting-adulterated-oil??-After-a-research-we-think-the-answer-is-“Yes”

Peanut cost in online grocery stores (recognized to give most discounts) is above 120 per kg; if you purchase in bulk / from wholesale, it might be INR 80 per kg. In general, the oil extraction rate of peanut will be 35% to 45% i.e., 300-450 grams from one kg of peanuts depending upon the grinding technique (wooden or metal). Metal machines give higher yield as to increase they do mild heating. So the cost to extract 1 litter oil would be 180-200/kg. To the extracted oil from raw peanut, they have plant & machinery purchase & maintenance cost, labor cost, and they need to redeem from this only. Once fresh oil got produced, they have bottling cost, marketing cost, distribution cost, dealer/distributor, retailer margins, and company profits as well. When we calculate all this, the minimum charge of 1 litter peanut oil should be INR 250 per kg. If we consider the prominent player of the industry i.e., fortune, they are giving Fortune Grounutt Activ Jar, 5L in INR 650 i.e., INR 130 per kg. If this is the case for the peanuts, the same would be there in case of cotton, sesame, coconut, Rapeseed/canola, which we produce in the country and has a reasonable oil extraction rate from 35% to 60%. How about Rice and corn, which has a lesser oil extraction rate ?? Maybe it can be compensated as they are lower in pricing. The surprise factor is in sunflower, Safflower, Soybean; Do you think the pricing of these oils should be in line with these oils??



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