The trend of improvement in almost all edible oil-oilseed prices last week amidst strength in foreign markets


New Delhi: Amidst the strengthening of the prices of edible oils abroad, a firm trend was observed in the wholesale prices of almost all edible oils and oilseeds in the country’s oil-oilseeds markets last week. Market sources said that during the month of August, the prices of edible oils abroad have strengthened by about three percent, as there is ambiguity regarding the weather condition in Malaysia and America and the situation will be clear only after the upcoming weather report in this regard. .

He said that major oil organization Indore-based ‘SOPA’ has also expressed apprehension of soybean productivity being affected amid dry weather in soybean-producing states and said that the rains in September will decide the production situation. The Meteorological Department estimates that the rains will increase in the month of September. He said that due to cheap imported oil, the perception of the oil-oilseed market remains weak and the crop of indigenous oilseed farmers is not being consumed in the mandis.

The country’s oil crushing mills have to sell their edible oils in bulk by reducing the price and they have to bear the loss of Rs 4-5 per kg. Oilseeds farmers of the country are also getting prices much less than the minimum support price (MSP) for mustard and sunflower oilseeds. Consumers are also getting mustard oil with a wholesale price of about Rs.100 a liter for about Rs.150. Similarly, consumers are getting Rs 140-145 per liter of imported sunflower oil at the port, whereas the price of this oil should be around Rs 105 per litre.

So in such a situation, what is the point of cheap import of edible oils in the country? Sources said that after crushing about one million tonnes of soybean, a monthly supply of about 1,75,000 tonnes of soybean oil is possible. In view of the current weather conditions, if soybean is not available, the production of soybean oil will also be less. The availability of groundnut and cottonseed in the country has already remained negligible.

In such a situation, sunflower oil was meeting the shortage of soyabean, groundnut and cottonseed. It is noteworthy that soybean cannot fulfill the shortage of sunflower oil. Therefore, at least the oil organizations should place before the government the details of the supply of ‘soft oil’ in the country during festivals and the shipment for import in July-August. Sources said that going forward overall, the future of the country’s oil-oilseeds sector looks good and if this apprehension turns out to be true in the next four-five years, then it is not clear who will take responsibility for it.

Sources said with the increase in population, the average demand for edible oils in the country is increasing by about 10 per cent every year. In such a situation, there should have been an increase in the cultivation and production of indigenous oil-oilseeds, but government statistics show that the area under oilseeds cultivation like groundnut, cotton (cottonseed), sunflower etc. has decreased. Last week, the wholesale price of mustard seed strengthened by Rs 40 and closed at Rs 5,650-5,700 per quintal. Mustard oil Dadri increased by Rs 25 to close at Rs 10,675 per quintal.

Mustard seed oil further strengthened by Rs 10 each to close at Rs 1,780-1,875 and Rs 1,780-1,890 per tin (15 kg), respectively. During the week under review, soybean seeds and loose closed at Rs 5,205-5,300 per quintal and Rs 4,970-5,065 per quintal, respectively, with a gain of Rs 125-125. Soybean Delhi and Soybean Indore oil strengthened by Rs 35 and Rs 50 respectively to close at Rs 10,160 and Rs 10,075 per quintal, while soyabean degum oil remained unchanged at Rs 8,350 per quintal.

Groundnut Oilseeds, Groundnut Gujarat and Groundnut Solvent Refined strengthened by Rs 50, Rs 50 and Rs 15, respectively, to Rs 7,815-7,865, Rs 18,600 and Rs 2,725-3,010, respectively, in the week under review amid poor availability of goods. Closed per tin. During the week under review, crude palm oil (CPO) prices rose by Rs 60 to close at Rs 8,210 per quintal due to firming up overseas.

Palmolein Delhi increased by Rs 85 to Rs 9,385 a quintal and Palmolein X Kandla closed at Rs 8,550 a quintal, showing an increase of Rs 100 in the weekend under review. Cottonseed oil also gained Rs 75 to close at Rs 9,100 a quintal in line with the general trend of firming up and shortage of inventories.

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