Amidst increasing demand for light oils, farmers are avoiding selling at low prices in the mandis. Due to reduced arrival of soybean, the wholesale prices of soybean grain and loose improved by Rs 265 and Rs 275 respectively to close at Rs 5,550-5,600 and Rs 5,360-5,410 per quintal, respectively, in the week under review.
There is a rise in the price of edible oils
In the last week, the demand for edible oils abroad increased in the Delhi oil-oilseeds market and Russo-Ukraine War Mustard due to supply being affected due to Soybeangroundnut oil – oilseeds, cottonseed, CPO and palmolein oil Prices improved. With the onset of winters, the demand for weddings and marriages also increased, supporting this price hike. Traders said that the prices of cotton (Narma) are lower this year as compared to last year, due to which the farmer is bringing less goods for sale at lower prices. Cottonseed oil prices have improved amid short supply.
Sources said that farmers are selling mustard very less in the mandis and there is a correction in mustard oil oilseeds prices due to demand from winter as well as wedding season. Groundnut, soybean oil oilseeds prices also improved due to increased demand for light oils in winter and reduced supply of edible oils globally. According to sources, in view of the Russia-Ukraine war, crude palm oil (CPO) and palmolein oil is meeting the shortfall created due to short supply of edible oils. For this reason, there is a global demand for these oils. Improvement in CPO and Palmolein oil prices was observed due to short supply of edible oils.
Why did cooking oil become expensive?
Sources said that due to the quota for exemption of duty free import of sunflower and soybean edible oils, the rest of the imports almost came to a halt as the importers would have to pay the import duty for the remaining imports. This has created a situation of short supply in the market and these edible oils have become more expensive instead of being cheap. Earlier there was a good production of sunflower in the country, but today the country imports about 98 percent sunflower oil to meet the demand of this oil.
Business sources said that the government should reconsider its decision, either completely open up imports or impose an import duty of at least 5.5 percent as before. He said that the country will earn from this. Sources said that in the midst of the uncertain situation of oilseeds business, a permanent and solid solution to this problem can only be to increase oilseeds production by encouraging the farmers of the country.
How much did the price of oil increase
According to sources, the price of mustard seeds increased by Rs 300 to Rs 7,425-7,475 per quintal last week against Friday’s closing price of last weekend. Mustard Dadri oil closed at Rs 15,350 per quintal, up by Rs 600 over the weekend. On the other hand, mustard, Pakki Ghani and Kachchi Ghani oil prices also rose by Rs. 75 each to Rs. 2,330-2,460 and Rs. 2,400-2,515 per tin (15 kg) respectively. Sources said that amid increasing demand for light oils, farmers are avoiding selling at low prices in mandis. Due to reduced arrival of soybean, the wholesale prices of soybean grain and loose improved by Rs 265 and Rs 275 respectively to close at Rs 5,550-5,600 and Rs 5,360-5,410 per quintal, respectively, in the week under review.
Soybean oil prices also improved in the week under review. The wholesale price of soybean in Delhi rose by Rs 1,000 to close at Rs 15,200. The price of Soyabean Indore increased by Rs 900 to Rs 14,850 and Soyabean Degum with a gain of Rs 950 to close at Rs 13,500 per quintal. There was also a substantial improvement in groundnut oil and oilseeds prices.
Groundnut oilseeds prices edged higher by Rs 75 to Rs 6,900-6,960 per quintal due to wedding season and increased demand for light edible oils in winter. Groundnut oil Gujarat improved by Rs 250 to Rs 16,000 per quintal in the week under review against the previous weekend’s closing price, while the price of groundnut solvent refined improved by Rs 45 to Rs 2,575-2,885 per tin. Crude palm oil (CPO) prices rose by Rs 750 to close at Rs 9,500 a quintal in the week under review amid global demand. While the price of Palmolein Delhi increased by Rs 600 to Rs 11,100 and that of Palmolein Kandla increased by Rs 700 to Rs 10,200 per quintal. Cottonseed oil rose by Rs 500 to close at Rs 13,700 per quintal in the week under review.
English news headline: edible oil prices on rise due to low supply check mustard oil soybean oil latest rate
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