The actions of sunflower producers have contributed to the sharp increase in the price of oil in early March 2022, Money reported, citing the sector analysis adopted by the Commission for the Protection of Competition (CPC).
The data shows that for 2022, the income of oilseed sunflower producers grows faster than the volume of yields. According to the CPC, from these data it can be done assumption that this growth in revenue is due to holding production in storage warehouses with the aim of realizing the same at a later stage, when raw material prices are higher.
Moreover, during the period under study wheat export prices rarely exceeded the European average, while during the same period sunflower was more expensive than the EU average.
After the price of sunflower oil increased by 40% in March 2022, this also affected the price of oil, both retail and wholesale. Even when in some places the purchase prices of sunflowers started to decrease, the price of oil continued to be high.
Oil producers are also of the opinion that producers of oilseed sunflower they deliberately do not want to sell the product, to keep it in warehouses and sell it at higher prices. This speculative price rise is mostly seen in 2021 and 2022.
The CPC recommends increased monitoring of the grain market. The lack of such creates conditions for distortion of the market and the artificial increase of prices.
The CPC monitors the market and will provide expertise on reducing food prices
The commission was alarmed by the media statements about it before the local elections
Tags: CPC Sunflower producers contributed increase oil prices
