Edible oil prices fall due to glut of cheap imported goods
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Sources in the know of the market said that farmers had kept mustard in Delhi’s Najafgarh mandi for three days, but it was not sold as the prices were being quoted lower. Unhappy with the prices of these crops being much lower than the Minimum Support Price (MSP), they were not selling their crops.
Due to the glut of imported cheap edible oils in the country, there was a downward trend in oil-oilseeds in the local mandis on Monday and a fall in soybean oil-oilseed, palmolein and cottonseed oil prices was observed. On the other hand, prices of mustard and groundnut oil-oilseeds closed at the previous level due to high prices but no buying. Sources in the know of the market said that farmers had kept mustard in Delhi’s Najafgarh mandi for three days, but it was not sold as the prices were being quoted lower. Unhappy with the prices of these crops being much lower than the Minimum Support Price (MSP), they were not selling their crops.
His crops were lying in the open. Seeing no improvement in the price, the farmers started loading mustard back in their trolleys, then the agents bought this arrival at a price of about Rs 4,800 a quintal, increasing the price marginally by about Rs 100. It is noteworthy that the minimum support price of mustard is Rs 5,450 a quintal. Sources said that Suresh Nagpal, president of the Central Oil Industry Trade Association, has said that he has been requesting the government since March 13 that if the duty on imported edible oils is not increased, trouble may increase and due to this, farmers will be discouraged and switch to other industries. Can turn to crops.
He said that in comparison to any other oilseed crops grown in the country, maximum i.e. 40 percent oil is obtained from mustard. But due to the glut of imported soyabean and sunflower oil, the mustard is not being consumed and nearly 50 per cent of the mills have stopped functioning. Sources said the government will have to take into account that sunflower and soyabean oil attract an import duty of 5.5 per cent while palmolein attracts 13.75 per cent import duty. Due to costlier palmolein, importers have started importing soft oils by canceling its import orders.
Given this situation, it is estimated that CPO and Palmolein imports may come down to 5.5 lakh tonnes this month. What should low income consumers do now? Because sunflower and soyabean are not available cheaply due to imposition of premium and maximum retail price (MRP) despite the wholesale price being cheap and palmolein has become costlier due to import duty of 13.75 percent. To remove the existing discrepancy, either the government should increase the import duty on soyabean and sunflower oil or reduce the import duty on palmolein to create a balance.
Sources said that imported sunflower and soybean refined oil costs Rs 85 a liter while imported palmolein costs Rs 90 a liter at the Kandla port. Due to this the import of soft oil is increasing. On the other hand, Brazil has a record soybean crop this time. The pressure of rapeseed and sunflower oil is also becoming a hindrance in the country’s consumption. For the first time, the prices of rapeseed, soybean and sunflower are trending below palmolein. Attention has to be paid to handling this situation immediately, otherwise there is a danger of closure of the remaining and loss-making mills in the country.
Sources said it seems improbable that oil mills in a country which is dependent on 60 per cent imports to meet its requirement should run at a loss or come to a standstill. The prices of oil-oilseeds on Monday were as follows: Mustard oilseeds – Rs.5,000-5,100 (42 percent condition rate) per quintal. Groundnut – Rs.6,805-6,865 per quintal. Groundnut oil mill delivery (Gujarat) – Rs 16,710 per quintal. Groundnut refined oil Rs 2,540-2,805 per tin. Mustard oil Dadri – Rs 9,600 and Rs 9,700 per quintal.
Mustard Pakki Ghani – Rs 1,570-1,640 per tin. Mustard raw Ghani – Rs 1,570-1,680 per tin. Sesame oil mill delivery – Rs 18,900-21,000 per quintal. Soybean oil mill delivery Delhi – Rs 10,600 per quintal. Soybean Mill Delivery Indore – Rs 10,300 per quintal. Soybean oil Degem, Kandla – Rs 8,950 per quintal. CPO X-Kandla – Rs 8,850 per quintal. Cottonseed Mill Delivery (Haryana) – Rs 9,150 per quintal. Palmolin RBD, Delhi – Rs 10,150 per quintal. Palmolin X- Kandla – Rs 9,200 (without GST) per quintal. Soybean seed – Rs 5,285-5,335 per quintal. Soybean loose – Rs 5,035-5,125 per quintal. Maize Khal (Sariska) – Rs 4,010 per quintal.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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