The strengthening of the rupee against the dollar has made the import of edible oils cheaper. This is the reason that the prices of crude palm oil (CPO), palmolein oil have come down in the Delhi oil-oilseed market last week.
The strengthening of the rupee against the dollar has made the import of edible oils cheaper.
The strengthening of the rupee against the dollar has made the import of edible oils cheaper. This is the reason that the prices of crude palm oil (CPO), palmolein oil have come down in the Delhi oil-oilseed market last week. Whereas due to short supply in the mandis, the export demand of soybean degum oil and DOC has led to a rise in the prices of soybean oilseeds. Market informed sources said that due to the quota system of the government, due to short supply and empty pipeline of soybean processing plants, soybean oilseeds have also improved. Due to the quota system in the country, a situation of short supply of sunflower and soybean degum oil has arisen.
What were the reasons given by the experts?
Experts said that due to the strengthening of the rupee against the dollar, the fall in CPO and palmolein oil prices in the reporting week compared to the end of last week, due to the cheap seating of imported oils like palm, palmolein. On the other hand, de-oiled cakes (DOC) of oilseeds and export of oilseeds coupled with local demand closed with gains in soybean grain and loose prices. Traders said that due to the import demand from abroad, there has been a substantial improvement in the price of sesame oil in the week under review.
Experts said that farmers had sold soyabean at a price of around Rs 10,000 per quintal in August last year, which is being sold at Rs 5,500-5,600 per quintal this time. Although this price is higher than the minimum support price (MSP), it is less than last year’s price. This time the farmers had bought the seeds too expensive, due to which the farmers are refraining from selling them at low prices. Sources said that palmolein being cheaper than soybean has affected the demand for soybean refined, due to which soybean Delhi and Indore oil prices have declined in the week under review. Sources said that due to the increase in the arrival of new crops of groundnut and cottonseed in the mandis, their oil and oilseed prices have come down.
Government needs to take this step
According to sources, the government will have to make a lot of efforts to become self-sufficient in edible oil and for this it is most important not to open the futures business of edible oils. He says that futures trading encourages speculation. He said that in the month of April-May 2022, when there was a huge shortage of imported oils, with the help of indigenous oil-oilseeds, it was successful to meet this shortage and at that time the futures trading of edible oils was also closed. Keeping this aspect in mind, it is very important to increase oilseeds production and achieve self-sufficiency in it. Domestic oil industry, farmers and consumers are troubled by the decline and rapid growth of foreign markets.
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