In the midst of inflation, a relieving news has come from the kitchen. The price of edible oil has decreased. Amid a significant drop in the prices of palm and palmolein oil in foreign markets, the prices of all oils and oilseeds in the country ended lower last week. Market sources have reported that the price of soybean degum oil, which was around $1,235-1,240 per ton last week, has dropped to $1,155-1,160 per ton in the reporting week.
Additionally, edible oil analysts in Indonesia and Malaysia had previously mentioned a shortage of palm and palmolein stocks. However, the situation has turned out to be completely opposite. In fact, amid a nearly 30% decline in exports from Indonesia, the stock of palm and palmolein edible oil has increased from the previous 23.2 million tons to nearly 30 million tons due to a decrease in spot demand at high prices. This has led to a 23% increase in stocks. As a result, the prices of CPO (Crude Palm Oil) and palmolein have dropped in foreign markets, which has also impacted the prices of other oils and oilseeds.
NAFED and HAFED hold most of the mustard stock…
Sources have stated that the daily consumption of mustard in the country is approximately 3.5-4 lakh bags. While traders and farmers have very limited stock of mustard, cooperative organizations like NAFED and HAFED hold a large portion of the stock. Therefore, this stock should be sold cautiously. Mustard should be sold to oil mills, rather than to traders and stockists, so that edible oil can be made available to the common consumers in the market after processing.
Arrival of cotton in the markets has decreased…
Sources have stated that at the beginning of last week, the Cotton Corporation of India (CCI) sold cottonseed oilcake at a very low price. This affected the prices of cotton in other states. Additionally, the increase in the trade of fake cottonseed led to a drop in cotton prices, which in turn affected the price of cotton and caused a decrease in its value. As a result, the arrival of cotton in the markets decreased from 1.96 lakh bales to 1.05 lakh bales. This has also impacted other oilseeds in the country. Furthermore, they suggested that in order to provide relief to soybean farmers, the government should consider increasing the export of soybean de-oiled cake (DOC).
Last week, the wholesale price of mustard dropped by ₹150, closing at ₹6,550-6,600 per quintal. The wholesale price of mustard daadhi oil dropped by ₹500, closing at ₹13,650 per quintal. The price of refined and crude mustard oil also decreased by ₹50 each, closing at ₹2,260-2,360 and ₹2,260-2,385 per tin (15 kg), respectively.
In the reporting week, the wholesale prices of soybean grains and soybean loose decreased by ₹200 each, closing at ₹4,425-4,475 and ₹4,125-4,160 per quintal, respectively. The prices of soybean in Delhi, Indore, and soybean degum also dropped by ₹850, ₹700, and ₹975, closing at ₹13,800, ₹13,700, and ₹9,700 per quintal, respectively.
In Rajasthan, peanuts are being sold at prices lower than the Minimum Support Price (MSP)…
Due to peanuts being sold below the minimum support price in Rajasthan, the prices of peanut oil and oilseeds also saw a decrease of ₹75 compared to the previous week. These prices closed at ₹6,350-6,625 per quintal. In Gujarat, the price of peanut oil dropped by ₹975, closing at ₹14,700 per quintal. The price of peanut solvent refined oil also decreased by ₹150, closing at ₹2,220-2,520 per ton.
The price of CPO (Crude Palm Oil) has dropped by ₹900…
The price of Crude Palm Oil (CPO) decreased by ₹900, closing at ₹12,400 per quintal. The price of palmolein in Delhi dropped by ₹850, closing at ₹14,000 per quintal, and palmolein ex-Kandla oil dropped by ₹800, closing at ₹13,000 per quintal. Following the general trend of decline, the price of cottonseed oil also dropped by ₹1,050, closing at ₹12,650 per quintal.