18/09/2014 (Times of India) - Vegetable oil prices after falling to record lows in the first half of September have started rising once again. They are now likely to fall post Diwali as domestic production steps-up on revival of monsoon in growing regions of Maharashtra, Gujarat and Madhya Pradesh.

Due to abundant global supply of soyabean, cotton and sunflower crops, international price of these crops and their oil have reduced in last few months. US Department of Agriculture (USDA) estimated higher soyabean crop in US and all-time high rapeseed crop as well as record high yields for sunflower crop in European Union in their oilseeds crop outlook report for September. Back home cotton acreage is higher by 12 % compared to last year while castor acreage is likely rise by around 5% by the end of this month.

"Veg oil industry is facing pressure from both demand and supply side. Global supply of oilseeds crops are likely to increase due to higher output estimates from major producers US, EU, Brazil and Argentina. Declining palm oil prices have put pressure on prices of edible oils," said Raju Choksi, vice president (Agri Commodities), Anil Nutrients Ltd.

Choksi said rainfall in September in Maharashtra, Gujarat and Madhya Pradesh have improved condition of soyabean, cotton and groundnut crops; while it will help rapeseed acreage in Rabi season. "Lower international prices of soybean oil and sunflower oil have boosted their imports; while declining palm oil prices is putting pressure on domestic prices of these vegetable oils. However, the markets for edible oils have started looking up since last week and are likely to remain steady to firm in face of seasonal demands. Prices may soften post Diwali when domestic crushing peaks," added Choksi