PUNE: Prepare to use extra virgin olive oil sparingly on your salads, pizzas, and pastas as its price has surged from Rs 850 to Rs 1,100 a litre, with the possibility of reaching Rs 1,500 soon.

Estimates suggest that pomace olive oil prices, currently ranging from Rs 400 to Rs 500, may climb to Rs 800 a litre.Two consecutive years of drought in Europe have led to record-breaking price increases.

Importers report that prices have risen by at least 50% to 60% across the board.

"I spoke to my Italian suppliers recently, and they said that there is unlikely to be any respite till the end of the year," said an importer.Consumers in India, where the oil is imported, are already feeling the impact.

"I have noticed a significant reduction in discounting on olive oil both in supermarkets and online," said Prerna Bhamra, a resident of Vasant Kunj in Delhi.

The majority of olive oil in India (at least 90%) is imported from Spain and Italy, and the country is facing multiple challenges.

"Not only have the prices at source doubled over the past year, but the Euro has also appreciated by 12% to 13%, and we are still paying a 40% to 45% import duty on this higher price," said Rahul Upadhyay, president of Indian Olive Association.In 2022, India imported 13,433 metric tonnes of extra virgin and pomace olive oil.

Due to soaring domestic prices, the association has requested that the government reduce duties.

MRK Foods, which imports and supplies olive oil to over 600 fine-dining restaurants and five-star hotels, noted a demand for pomace oil.

"We have reduced imports of extra virgin olive oil by 30% and almost doubled imports of pomace," said Dhiraj Dama, managing director of the company.While many fine-dining Italian restaurants are still using old stocks, smaller restaurants have turned to alternatives.

Some consumers have already noticed a change in the taste.

"I have been visiting a small Italian cafe for a long time and I recently noticed a change in taste," said Kavita Gupta, a resident of Kalyani Nagar in Pune.