MARKET DEVELOPMENT
Edible Oil Prices to Remain Subdued on Ample Global Supply
Edible Oil Prices to Remain Subdued on Ample Global Supply
24/05/2013 (Hindu Business Online) - Edible oil prices are likely to remain subdued on lower domestic demand and comfortable global supply.
Since April, prices of major edible oils have been declining due to rising rabi crop arrivals and abundant supply of palm oil from Malaysia and Indonesia.
Apart from palm oil, India is importing soya oil from South America, which is also pressurising prices to a certain extent.
“Prices may recover marginally but there will not be any surge as there is abundant supply from worldwide origins. India’s import of edible oils is rising as supply from other major countries is rising, given the higher acreage and production. A comfortable international supply position coupled with a depressed demand due to seasonal factors is likely to suppress prices,” said Raju Choksi, Vice-President, agro-commodities, Anil Nutrients. The company is a subsidiary of the Rs 650-crore agro and food processing major Anil Ltd.
Choksi added that domestic supply would also improve as hoarded seeds with farmers and stockists would start getting liquidated once the monsoon sets in. “Palm oil stocks will start building up in Indonesia and Malaysia from July to August onwards,” he said.
The Central Organisation for Oil Industry and Trade estimated the total vegetable oil availability from the kharif and rabi oilseeds crops for the year 2012-13 (November-October) upward at 81.97 lakh tonnes compared to 81.52 lakh tonnes last year.
Imports during 2012-13 is estimated to increase by 5-7 lakh tonnes compared to last year.
Edible oil imports during November 2012-April 2013 rose by 11.6 per cent to 51.38 lakh tonnes against 46.03 lakh tonnes in the corresponding period last year, data from Solvent Extractors Association showed.
Palm oil imports surged 34.5 per cent to 33.54 lakh tonnes during the same period.
Since April, prices of major edible oils have been declining due to rising rabi crop arrivals and abundant supply of palm oil from Malaysia and Indonesia.
Apart from palm oil, India is importing soya oil from South America, which is also pressurising prices to a certain extent.
“Prices may recover marginally but there will not be any surge as there is abundant supply from worldwide origins. India’s import of edible oils is rising as supply from other major countries is rising, given the higher acreage and production. A comfortable international supply position coupled with a depressed demand due to seasonal factors is likely to suppress prices,” said Raju Choksi, Vice-President, agro-commodities, Anil Nutrients. The company is a subsidiary of the Rs 650-crore agro and food processing major Anil Ltd.
Choksi added that domestic supply would also improve as hoarded seeds with farmers and stockists would start getting liquidated once the monsoon sets in. “Palm oil stocks will start building up in Indonesia and Malaysia from July to August onwards,” he said.
The Central Organisation for Oil Industry and Trade estimated the total vegetable oil availability from the kharif and rabi oilseeds crops for the year 2012-13 (November-October) upward at 81.97 lakh tonnes compared to 81.52 lakh tonnes last year.
Imports during 2012-13 is estimated to increase by 5-7 lakh tonnes compared to last year.
Edible oil imports during November 2012-April 2013 rose by 11.6 per cent to 51.38 lakh tonnes against 46.03 lakh tonnes in the corresponding period last year, data from Solvent Extractors Association showed.
Palm oil imports surged 34.5 per cent to 33.54 lakh tonnes during the same period.