One commodity that can never be missing in a Ghanaian home is Palm oil. It is a commodity used in most dishes prepared by Ghanaians. From traditional dishes to modern recipes, palm oil holds a significant place in the hearts and kitchens of Ghanaian households.
In this article, we will delve into the factors influencing the market price of palm oil in Ghana, shedding light on its economic significance and how it shapes the daily lives of consumers and traders alike.
Join us as we navigate the intricate world of the palm oil trade, uncovering the forces that dictate its cost and its essential role.
About Palm Oil
The most popular vegetable oil worldwide, particularly in West Africa, is palm oil. Today, it can be found in about 60% of all packaged goods sold in supermarkets. Palm oil is an edible oil that comes from the fruit of the oil palm tree. The palm fruit is harvested and processed to extract the oil for consumption or used to produce other products.
Palm oil contains saturated and unsaturated fats. Beta-carotene and vitamin E are also found in certain kinds of palm oil. These palm oil varieties may have antioxidant properties. Bleaching, deodorising, and neutralising crude palm oil results in refined palm oil.
Palm oil is a significant export product for Ghana, with the country being the 29th largest exporter of palm oil in the world in 2021. In terms of imports, Ghana imported $289 million worth of palm oil in 2021, primarily from Malaysia, Indonesia, and Togo.
In Ghana, the palm oil industry is dominated by farmers, who own lands filled with palm trees. These farmers harvest the fruits and make them available to industries or individuals who then process the fruits for us to get the palm oil.
Palm oil is used for a lot of things, among these includes; cooking, soap making, medicines, biofuel for cooking and heating, and cosmetics among others. It can also be purchased at supermarkets, localmarkets, the mall and online.
Importance of Palm Oil
Palm oil is an edible vegetable oil that is extracted from the fruit of oil palm trees around the world, including Africa, South America, Asia, and Indonesia. It is used in close to 50% of the packaged products we have, from chocolate to shampoo to biofuel. Here are some of the reasons why palm oil is important:
- Palm oil is extremely versatile and has many useful properties. It is semi-solid at room temperature, which makes it good at keeping spreads spreadable. It is stable at high temperatures, which helps fried products, and it’s odourless and colourless so it doesn’t affect the look or smell of food products
- Palm oil has been linked to several health benefits, including protecting brain function, reducing heart disease risk factors, and improving vitamin A status. It is also rich in antioxidants, one of which is vitamin E, which is critical for keeping your immune system healthy and for helping your cells communicate.
- Palm oil can provide a steady income for farmers since it produces high quantities in small areas. It has also provided a lot of jobs for people.
- Palm oil is a very productive crop that offers a far greater yield at a lower cost of production than other vegetable oils. It has a long shelf life and is solid at room temperature, making it an ideal ingredient in a wide variety of foods.
Price of Palm Oil in Ghana
As of July 2023, the market price of palm oil in Ghana varies depending on the source, quantity and location. There have been a lot of fluctuations in the prices of palm oil recently.
As of July 2023, The retail price of Palm oil range is between GHS 43.00 and GHS 64.52 per kilogram or between GHS 19.50 and GHS 29.30 per pound(lb) in Accra and Kumasi.
At the local market, you can purchase a Litre of oil at GHS 35.00 and a gallon at GHS130.00.
Factors Affecting the Price of Palm Oil
The price of palm oil in Ghana is affected by various factors, including:
Global demand: The demand for palm oil on the global market can affect the price of palm oil in Ghana. When demand is high, prices tend to go up, and when demand is low, prices tend to go down.
Weather conditions: Weather conditions such as droughts, floods, and extreme temperatures can affect the production of palm oil in Ghana. When weather conditions are unfavourable, production may decrease, leading to an increase in prices.
Government policies: Government policies such as taxes, subsidies, and regulations can affect the price of palm oil in Ghana. For example, if the government imposes high taxes on palm oil imports, the price of palm oil may increase.
Currency exchange rates: The exchange rate of the Ghanaian cedi to other currencies can affect the price of palm oil in Ghana. If the cedi appreciates against other currencies, the price of palm oil may decrease, and if it depreciates, the price of palm oil may increase.
Production levels: The level of production of palm oil in Ghana can affect its price. When production is high, prices tend to go down, and when production is low, prices tend to go up.
It is important to note that these factors are not exhaustive, and other factors such as transportation costs, storage costs, and market competition can also affect the price of palm oil in Ghana.
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What is the current price of palm oil in Ghana?
As of July 2023, the price of palm oil in Ghana varies depending on the source. The retail price of palmoil in Ghana is between GHS 43.01 and GHS 64.52 per kilogram or between GHS 19.51 and GHS 29.26 per pound(lb) in Accra an kumasi.
At the local market Palm oil can be purchased at GHS 35.00 per Litre.
Why are palm oil prices in Ghana rising?
According to a report by the USDA Foreign Agricultural Service, the rising price of palm oil on the global market, currently hovering around $2,500 F.O.B., coupled with the depreciation of the Ghanaian cedi, has contributed to the increase in palm oil prices in Ghana.
What factors affect the price of palm oil in Ghana?
The price of palm oil in Ghana is affected by various factors, including global demand, weather conditions, government policies, currency exchange rates, and production levels.
Where can I buy palm oil in Ghana?
Palm oil can be purchased at any local market, super market, mall or online stores.
In conclusion, the prices of palm oil in Ghana are influenced by various factors. The rising global market price of palm oil, coupled with the depreciation of the Ghanaian cedi, has contributed to the increase in prices. Additionally, factors such as global demand, weather conditions, government policies, currency exchange rates, and production levels also play a role in determining the price of palm oil in Ghana.
It is important to note that the prices can vary depending on the source and location. Thus do well to stay updated on the market prices to know where to purchase palm oil.
