New Delhi: Last week, there was a mixed trend in business in the oil and oilseeds markets of the country. While groundnut and cottonseed oil prices registered an improvement, mustard and soybean oil-oilseeds, crude palm oil (CPO) and palmolein oil prices closed showing a decline. Sources said that last week the cooperative organization NAFED had invited tender for the purpose of selling mustard, after which the prices of mustard oil and oilseeds started falling. However, later NAFED stopped the selling activity in view of weak bids but this situation affected the prices of mustard oil and oilseeds.
Actually, the retail price of mustard should not be more than Rs 110-115 per litre, but this oil is being sold at the price of Rs 140-150 per litre. The market price of mustard oilseed is still under heavy pressure and its price is being quoted seven-eight percent below the Minimum Support Price (MSP). Sources said imported soybean oil is being sold at about seven percent below cost at the ports.
Ships loaded with palm, palmolein and soybean oil are parked at Kandla port and compared to the speed with which excessive imports are being made, the speed of unloading of oil laden ships is less because the imports are more than the demand. To continue running the credit letters of banks, importers are selling their goods at a loss, resulting in loss of foreign exchange. Due to shortage of good quality groundnut, the prices of its oil and oilseeds showed improvement.
Although the price of groundnut oil is almost double that of imported cheap edible oils, it is improving due to lack of good quality stock. He said that due to reduced import of sunflower oil at Kandla port, cottonseed oil prices also improved. On the other hand, there is a decline in CPO and palmolein oil due to selling below cost by importers. Sources said that milk and milk products, which are consumed more than edible oil, have the potential to influence retail inflation and due to less crushing of indigenous oil-oilseeds along with shortage of cake, its prices have increased significantly, which has led to increase in milk prices. A continuous increase has been seen.
Market sources said that along with the government, oil organizations should take cognizance of the indiscriminate import and loss-making sale of edible oils in the country. Apart from this, along with the problems of local oil mills and complaints of oilseed farmers not consuming their goods, consumers will have to pay attention to issues like getting edible oil at higher prices in retail. Compared to the previous weekend, the wholesale price of mustard seeds decreased by Rs 125 last week and closed at Rs 5,475-5,525 per quintal.
The price of Mustard Dadri oil fell by Rs 350 and closed at Rs 10,000 per quintal. Mustard Pakki and Kachchi Ghani oil prices closed at Rs 1,710-1,805 and Rs 1,710-1,820 per tin (15 kg), showing a loss of Rs 50 each. In the week under review, soybean grain and loose prices fell by Rs 135 and Rs 130 respectively to close at Rs 4,970-5,065 per quintal and Rs 4,720-4,835 per quintal, respectively.
Soybean Delhi, Soybean Indore and Soybean Degum oil prices declined by Rs 250, Rs 300 and Rs 200 respectively to close at Rs 9,550, Rs 9,450 and Rs 7,900 per quintal, respectively. Due to shortage of good quality goods in the week under review, the prices of Groundnut Oilseeds, Groundnut Gujarat and Groundnut Solvent Refined also improved by Rs 125, Rs 305 and Rs 35 to Rs 7,565-7,615, Rs 18,225 and Rs 2,665-2,950 per kg respectively. Closed on tin.
During the week under review, the price of crude palm oil (CPO) closed at Rs 7,600 per quintal with a loss of Rs 325 due to selling at ports below the import cost. The price of Palmolein Delhi fell by Rs 305 to Rs 8,850 per quintal and the price of Palmolein Ex Kandla closed at Rs 8,000 per quintal showing a loss of Rs 275. Due to reduced import of sunflower oil, the price of cottonseed oil improved by Rs 25 and closed at Rs 8,500 per quintal.