Primarily used for human consumption, vegetable oils and fats are also used in animal feed, for medicinal purposes and for certain technical applications. These are extracted from a range of different fruits, seeds and nuts. Unlike industrial oils and fats, which are mostly produced from petroleum, vegetable oils and fats are usually non-toxic and biodegradable, without requiring any further treatment.
India is the second largest edible oil market in the world after China... Groundnut oil is the major product derived from groundnut, a major oilseed crop of India. Groundnut oil is extensively used as a cooking medium, as a food constituent and lighting fuel. Groundnut oil is an excellent source of Vitamin E, mono and poly unsaturated fatty acids and it has better keeping quality than other edible oils like soybean, corn, and safflower oils.
According to the National Commodity & Derivatives Exchange Limited, the demand of groundnut oil for cooking purpose is reasonably price elastic.
Hmmm... That's interesting. I never knew that! What does it mean that groundnut oil is "price elastic"? Economically justify this claim. What are the implications for other oil markets in India such as soya oil, mustard oil and sunflower oil ?
