All edible oils, oilseeds prices trended down in the last week
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Market knowledgeable sources said that the prices of imported oils are so cheap in the market that it has become difficult for the country’s soyabean, groundnut, upcoming mustard crop, cottonseed to be consumed in the mandis. Due to the glut of cheap imported light oils at the ports, the country’s cottonseed oil is not being consumed and it is becoming expensive.
New Delhi. Last week, a decline was observed in the prices of all edible oil-oilseeds in the Delhi oil-oilseed market. Due to fall in the prices of edible oil-oilseeds in foreign markets, record import of light oils like sunflower and soybean in the country, mustard, soybean, groundnut oil-oilseed, cottonseed, CPO and palmolein oil declined in the countrywide oil-oilseed market. . Market knowledgeable sources said that the prices of imported oils are so cheap in the market that it has become difficult for the country’s soyabean, groundnut, upcoming mustard crop, cottonseed to be consumed in the mandis. Due to the glut of cheap imported light oils at the ports, the country’s cottonseed oil is not being consumed and it is becoming expensive. We get maximum quantity from cottonseed only. A leading brand milk company of the country has increased the prices of its milk at most places across the country.
Sources said that the main reason for this increase is that farmers are facing high cost of cow dung used for animal feed and they are buying expensive cow dung. Looking at the present situation, it seems that instead of being self-sufficient in oilseeds, the country’s dependence on imports has increased. Sources said that till November last year, on an average, 11.66 lakh tonnes of edible oils were imported in the month, but due to the quota system of duty free import, there has been a record increase in the import of edible oils in the very first month of the year 2023 i.e. January. In January, this import was 17.70 lakh tonnes. If the import prices of light oils remain the same, it is difficult to consume indigenous oil and oilseeds. Many oil mills in the country have also started laying off their employees due to non-performance of crushing operations.
Sources said that on an average a man consumes about one and a half liters of edible oil in a month while his milk consumption is 8-10 liters a month. Milk prices have increased several times in the recent past due to increase in the price of cake from the crushing of edible oil. The costlier milk has a far greater impact on retail inflation. Because of this also, it is necessary to consume indigenous oil-oilseeds in the market and by increasing the production of oilseeds, the price of milk will also be cheaper. Sources said that earlier (in the 1980s-90s) edible oils were distributed through the Public Distribution System (PDS) after importing them from government agencies to overcome the shortage of edible oils in the country.
In this system, the consumers used to get the direct benefit of the relief expected from the government. This did not make any difference to the farmers nor did it make any difference to the oil industry. But at present, despite duty free import of light oils, the consumers in the retail market are not getting proper benefit of the fall in oil prices. Sources said that the wholesale price of sunflower, which was around Rs 200 a liter seven-eight months back, has come down to Rs 93 a liter at the country’s ports. Similarly, the wholesale price of soyabean oil has come down from Rs 170 a liter to Rs 97 a litre. In front of this, how will indigenous oil be consumed whose cost is high. This may affect the ongoing sunflower sowing. The need of the hour is to cap the import duty to save the entire oil industry, farmers and consumers from this fall.
Sources said that the quantity in which the wholesale import price has come down, the consumers are not able to get the benefit in that quantity. This is all due to the Maximum Retail Price (MRP) being fixed very high by the retailers and small packers. According to sources, last week, mustard seed dropped by Rs 310 to close at Rs 5,980-6,030 per quintal as compared to the previous weekend. Mustard Dadri oil also declined by Rs 500 to close at Rs 12,400 per quintal during the weekend under review. Similarly, Mustard Pakki Ghani and Kachi Ghani oil also declined by Rs 70-70 each to Rs 1,990-2,020 and Rs 1,950-2,075 per tin (15 kg), respectively.
Sources said that during the week under review, wholesale prices of soyabean grain and loose declined by Rs 110-110 each to end at Rs 5,395-5,475 and Rs 5,135-5,155 per quintal, respectively. Similarly, Soybean Delhi, Soybean Indore and Soybean Degum oil declined by Rs 350, Rs 400 and Rs 200 respectively to close at Rs 12,300, Rs 12,050 and Rs 10,500 per quintal during the weekend under review. Groundnut oil-oilseeds prices also declined in the week under review due to glut of cheap imported oils. During the weekend under review, the price of groundnut oilseed fell by Rs 55 to close at Rs 6,425-6,485 per quintal. Groundnut oil Gujarat declined by Rs 60 to Rs 15,400 per quintal during the week under review as compared to the previous weekend’s closing price, while groundnut solvent refined declined by Rs 20 to Rs 2,415-2,680 per tin.
Sources said that crude palm oil (CPO) declined by Rs 100 and closed at Rs 8,250 per quintal during the week under review. While the price of Palmolein Delhi remained unchanged at Rs.9,900. Palmolein Kandla closed at Rs 8,900 per quintal, showing a loss of Rs 100. In line with the general downward trend, cottonseed oil also declined by Rs 300 to close at Rs 10,650 per quintal during the week under review.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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