Except for mustard, and cottonseed, most of the oil-oilseeds prices fell in the last week
Almost all oil-oilseeds prices fell in the Delhi oil-oilseeds market last week in hopes of increasing the import of soybean and sunflower oil in the country. The effect of this decline was also visible in the rest of the oil-oilseeds prices and there was a fall in the prices of soybean and groundnut oil-oilseeds and CPO. On the other hand, mustard oil, oilseeds, and cottonseed oil prices improved due to increased demand for marriages along with winter.
Sources said that the prices of cotton (Narma) are lower this year as compared to last year due to which farmers are bringing fewer goods for sale at lower prices. Because of this, cottonseed oil prices have improved. Sources said that the farmers are bringing less mustard to the mandis and they are selling it with restraint. Therefore, there was an improvement in mustard oil-oilseeds prices. He said that in the coming days, the arrival of soybean and groundnut would increase gradually in the mandis.
Due to this, soybean and groundnut oil-oilseeds prices declined. Sources said that the price of crude palm oil (CPO) and palmolein oil is higher at Kandla port as compared to the import price. Due to this, the sale of these oils in the mandis is decreasing. Lower sales led to falling in CPO and palmolein oil prices. Sources said that due to the quota of exemption for duty-free import of edible oils, the rest of the imports have almost stopped as the importers will have to pay the import duty for the remaining imports.
This has created a situation of short supply in the market. He said that it is the responsibility of the oil organizations to apprise the government about the ill effects of the government's decision to fix the quota. A short supply situation has arisen in the market due to the non-buying of fresh deals by the importers after the government exempted 20-2 million tonnes of duty-free import of sunflower and soybean oil.
Sources said that the government should reconsider its decision, either remove the duty-free import limit or impose a duty on all imports as before. With this step, there will be no internal competition and imports will increase, due to which competition will also make edible oil available to consumers at a cheaper rate. Sources said that by abolishing the quota system by the government and levying fees, the government will also get revenue.
According to sources, it is the responsibility of the country's major oil organizations to inform the government about the unintended consequences of its decision and advise it to look again. He said that soybean oil-oilseeds prices improved last week due to increased demand for Died Cake (DOC) of soybean abroad. According to sources, the price of mustard seeds increased by Rs 50 to Rs 7,150-7,175 per quintal last week against Friday's closing price of last weekend.
Mustard Dadri oil rose by Rs 50 to Rs 14,750 per quintal in the weekend under review. On the other hand, mustard, pakki Ghani, and Kutchi Ghani oil prices also rose by Rs 5 each to Rs 2,250-2,385 and Rs 2,325-2,440 per tin (15 kg) respectively. Sources said the wholesale prices of soybean grains and loose fell by Rs 15 each to Rs 5,285-5,335 and Rs 5,085-5,135 per quintal, respectively, for the week under review due to increased arrival of soybean in the mandis.
Soybean oil prices also declined in the week under review. Soybean wholesale price in Delhi remained unchanged at Rs 14,200. Soybean Indore prices declined by Rs 50 to Rs 13,950 and Soyabean Degum by Rs 100 to close at Rs 12,550 per quintal. Groundnut oil and oilseeds prices fell in the week under review on expectations of an increase in arrivals of the new crop from Monday, with demand affected given the holidays in the mandis. Groundnut oilseeds prices declined by Rs 50 to Rs 6,820-6,885 per quintal during the weekend under review.
Groundnut oil, in Gujarat, declined by Rs 250 to Rs 15,750 per quintal, while groundnut solvent refined, declined by Rs 30 to Rs 2,530-2,790 per tin in the reporting week from the previous weekend's closing price. In the reporting week, crude palm oil (CPO) prices declined by Rs 350 to close at Rs 8,750 per quintal. While the price of Palmolein Delhi declined by Rs 200 to Rs 10,500 and that of Palmolein Kandla declined by Rs 300 to Rs 9,500 per quintal. Cottonseed oil rose by Rs 100 to close at Rs 13,200 per quintal in the week under review.