[Economics] The po[CENSORED]r oil would arrive in stores starting this week at a 20% lower price

[#Wittels-]

A logo will identify the cheapest products that are part of an initiative of the Government and the Association of Producers of Fats and Oils.

Vegetable oil is currently the product with the highest incidence in inflation in Ecuador and has displaced gasoline, which has been on the list of products with an increase for ten months.

 

Edible oils with the label that identifies them as "po[CENSORED]r oil" and that will cost 20% less will begin to be distributed this week in stores nationwide.

The Government and the Association of Producers of Fats and Oils (Aprograsec) held talks to achieve the production of low-cost but high-quality oil. This union announced that its associated companies will have a label with the name "po[CENSORED]r oil" on some of their products, which will be marketed at up to 20% cheaper than the current price.

Foods such as vegetable oil, milk and bread had a greater impact on inflation in May, which stood at 0.56%

"Sensitive to the increase in prices, with this initiative the companies in the sector seek to meet the needs of people with fewer economic resources and support the Government in its objective of finding solutions for the benefit of Ecuadorians," it is indicated in a statement.

It is also detailed that the distribution of these products will begin this week in neighborhood stores nationwide, and the consumer will be able to identify it through a logo on the packaging that is a red circle with the image of a hand holding a basket.

No further information is given about prices or the companies or brands that participate.

One day before the demonstrations called by the Confederation of Indigenous Nationalities (Conaie) began in the country, the Ministry of Agriculture announced that a project was underway to produce a po[CENSORED]r oil through a public-private partnership and that they held conversations with La Fabril.

The price of oil is one of those that has risen the most in recent months due to the escalation of raw materials in the world, the war between Russia and Ukraine -the main producer of sunflower oil in the world-, and locally due to the fall in the production.

Five loaves of bread for one dollar and oil 83% more expensive. Why do prices continue to rise in Ecuador?

At the global level, oil prices have skyrocketed, and some countries have even restricted their exports to stabilize supplies and limit consumer purchases of this product.

A liter of sunflower oil in Ecuador reaches $5.99 and it is not the only one that continues to rise. Canola has risen two dollars in the last year, in May 2021 it cost $2.39 and in May 2022 its price reached $4.39 in supermarkets. Vegetable oil is currently the product with the highest incidence in inflation and last month it ousted gasoline, which has been on the list of products with an increase for ten months.

In addition to the international price and food crisis, the country is also experiencing a key particularity, as it has been steadily losing palm production due to the onslaught of bud rot (palm plague) since 2018. Ecuador has lost between 110,000 and 120,000 hectares productive, and most of the loss is in the province of Esmeraldas, according to data from the National Federation of the Palm Oil Productive Chain (Propalma).

This union ensures that the country has gone from producing more than 604,000 tons of crude palm oil in 2017 to producing 380,000 tons. (ME)

 

Link: https://www.eluniverso.com/noticias/economia/precios-ecuador-aceite-po[CENSORED]r-tiendas-desde-esta-semana-a-un-precio-20-menor-nota/