Most edible oil-oilseeds prices have recovered amid signs of pick-up in winter consumption and pick-up in export demand. The demand for light oils has increased significantly during this period.
Increase in wholesale prices of edible oils
Despite the declining trend in overseas markets, mustard, soybean oil-oilseeds and cottonseed oil prices have seen improvement on Thursday in the Delhi oil-oilseed market due to increased demand for marriage and winter. On the other hand, the prices of its oil-oilseeds and CPO and palmolein, among others, have remained at the previous levels amid increasing arrivals in the market of the new crop of groundnut and increasing export demand abroad. Traders said that the Malaysia Exchange is down about two per cent while the Chicago Exchange which closed nearly three per cent stronger last night, is currently down about two per cent.
Groundnut oil-oilseeds prices remained at the previous level due to increased export demand and winter demand amid increased arrivals in the country’s mandis despite a declining trend at Malaysia and Chicago exchanges, sources said. Sources said that due to the cheap price of palmolein oil, the demand for palm oil has increased in India as well as abroad. Four-five months ago, the price of palmolein oil was $ 2,150 per tonne, it has now come down to about $ 1,060 per tonne and due to this the demand has also increased.
Apart from this, weddings are expected to be in record numbers this time after the pandemic, as well as most of the edible oil-oilseeds prices have improved amid the winter and increased export demand. During this, the demand for light oils has increased significantly, but despite this, the prices of CPO and Palmolein oil closed at the previous level.
He said that the edible oil industry, farmers and retail traders are happy that the government has abolished the stock holding limit in respect of edible oil-oilseeds. Taking a similar step, the government should do away with the quota system of 20 lakh tonnes for duty-free import of sunflower and soybean oil, sources said. This will increase imports, which will soften oil prices. This work will have to be done as soon as possible because it is necessary to increase imports to meet the increased demand for light oils in marriages and winters.
Business news Headline: edible oil price up on domestic demand cues
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