MARKET DEVELOPMENT
Edible oil-oilseeds prices broke last week due to fall in foreign countries
Edible oil-oilseeds prices broke last week due to fall in foreign countries
07.08.2022 (www.newsdayexpress.com) - New Delhi, Aug 7 (Language) Due to the fall in the prices of edible oils in the foreign markets last week, almost all including mustard, groundnut, soybean oil-oilseeds and cottonseed, crude palm oil (CPO), palmolein oil in the oil-oilseeds markets across the country. Edible oilseeds prices recorded a loss. Rest of the oil and oilseeds prices remained unchanged.
Traders said oilseeds prices fell last week due to cheaper imported edible oils.
Sources said that the CPO price has weakened at the present time. The importers’ oil is lying at the ports and they are forced to sell them cheaply after the sudden drop in prices. Apart from this, the next consignment of CPO, Sunflower and Palmolein oil will come, its price will also be Rs 20-30 less than the current price.
Sources said that in view of the sharp fall in global oil and oilseeds prices, the government had called a meeting of oil unions and oil industry last week. In the meeting, representatives of oil associations and oil industry have assured to reduce edible oil prices by Rs 8-10 per liter in the next 10 days. The prices of edible oil and oilseeds are under heavy pressure abroad as well as in the country, which is the main reason for the fall in prices.
He said that despite assurances by the oil traders and representatives of oil organizations to reduce the prices of edible oilseeds by about Rs 10 a liter, the consumers are not getting proper benefit of the fall in global oil prices as the maximum retail price (MRP) is not being passed on to the consumers. In comparison, about 40-50 rupees are more by the liter. Even if there is a decrease of 10 rupees in this 50 rupees, then the consumers will not be able to get the proper benefit.
Giving an example, the source said, “The Argentine sunflower oil price at Kandla port is $1,550 per tonne or Rs 123.50 per kg. After adding port cost and refining cost, the total cost will come to Rs 130 per kg. Now adding the cost of GST, packing and transportation on this, then the total cost is Rs 134 per liter. Now if the margin of retail oil traders and refining people are also put, then the price of this sunflower oil should be maximum Rs 145-150 a liter.
He said that in the last two-and-a-half months, the prices of sunflower, soybean degum, palmolein and CPO have come down by Rs 75-85 a liter, but the consumers are yet to get its due benefit.
However, sources said that this sunflower oil is being available to the general consumers in the retail market at a price of Rs 190-200 per liter. Even after the reduction in the price, its price is only between Rs 180-190 per liter.
Sources said there is a need to control the MRP in the oil business so that its MRP exceeds the actual cost to a limit. Despite the sharp fall in the global edible oil prices and the meetings of the oil traders, neither the consumers, nor the farmers nor the oil industry are seeing the benefits of the fall in edible oil prices.
Sources said that the wholesale price including surcharge of mustard oil is Rs 135 per liter and in retail trade its maximum price should be Rs 155-160 per liter. But in the retail market, mustard oil is selling around Rs 175 per liter.
He said that the new consignment of import of crude palm oil (CPO), palmolein will be cheaper by about Rs 20 per liter from the current weak price. The price of new consignments of sunflower oil is also expected to be Rs 25-30 cheaper than the current price.
Sources said that it is cheaper to import edible oil from abroad, which is the main reason for the decline in edible oilseeds. Sunflower oil, which used to cost $2,400 a tonne sometime back, is currently available at $1,550 a tonne. Similarly, soybean degum and palmolein have become cheaper than before but it is too late to get its proper benefits.
Farmers need to be encouraged to make the country self-reliant in oilseeds production. By giving remunerative price to the farmers for their produce, they will be motivated to increase the production.
Sources said that the price of mustard seeds closed at Rs 7,215-7,265 per quintal with a loss of Rs 75 last week as compared to last weekend. Mustard Dadri oil declined by Rs 200 to Rs 14,600 per quintal during the weekend under review. On the other hand, mustard, pakki ghani and kutchi ghani oil also fell by Rs. 30 each to Rs. 2,310-2,390 and Rs. 2,340-2,455 per tin (15 kg) respectively.
Sources said wholesale prices of soyabean grains and loose fell by Rs 90 each to Rs 6,360-6,435 and Rs 6,135-6,210 per quintal, respectively, for the week under review amid a general trend of declining trend.
Soybean oil prices also saw a decline in the week under review. The wholesale price of Soyabean Delhi declined by Rs 350 to Rs 13,250, Soyabean Indore declined by Rs 150 to Rs 13,150 and Soyabean Degum declined by Rs 300 to Rs 11,950 per quintal.
Groundnut oil and oilseeds also declined due to costlier demand affected. Groundnut oilseeds fell by Rs 25 to close at Rs 6,870-6,995 per quintal during the weekend under review. Groundnut oil, Gujarat, declined by Rs 120 to Rs 16,000 per quintal against the previous weekend’s closing price, while Groundnut Solvent Refined fell by Rs 20 to Rs 2,670-2,860 per tin.
Crude palm oil (CPO) prices declined by Rs 150 to Rs 11,150 a quintal in the week under review. While the price of Palmolein Delhi declined by Rs 100 to Rs 13,200 and that of Palmolein Kandla declined by Rs 100 to Rs 12,100 per quintal.
Cottonseed oil price also closed at Rs 14,000 per quintal with a loss of Rs 350 in almost closed trade.
Source: navbharattimes.indiatimes.com