Government Despite the government increasing the import duty price of edible oils, the prices of crude palm oil (CPO) and palmolein oil decreased instead of increasing in the first trading session of the year in the country’s oil-oilseeds market on Wednesday. Due to fall in prices of imported oils, business sentiments were affected and soybean oil prices declined due to reduction in cottonseed oil and import duty prices. On the other hand, CCI’s decision to increase the price of cottonseed has affected groundnut (oilseed) and there is a slight improvement in its price. But despite the already weak prices of groundnut, the prices of groundnut oil remained at the previous level. Due to the affected business sentiment, the prices of mustard oil, oilseeds and soybean oilseeds also remained at the previous level.
Increase in import duty of edible oils
There was a holiday in Malaysia and Chicago Exchange on account of New Year. Market sources said the government has increased the import duty price of edible oils and increased the import duty price of CPO by Rs 106 per quintal, palmolein by Rs 117 per quintal. On the other hand, the import duty price of soybean degum has been reduced by Rs 28 per quintal. This is a step taken in the right direction by the government. He said that when the export duty of edible oils is increased in Malaysia, as a remedial measure the government of our country should also increase the import duty price in the interest of the country. If seen, the price of palm and palmolein is already higher than the indigenous oils and oilseeds, but due to the price of soybean oil being cheaper than oils like mustard and groundnut, it is becoming difficult to compete with the indigenous oils and oilseeds. To avoid these uncertainties, we will have to focus on increasing our oilseed production and minimize our dependence on imports.
Palm oil becomes cheaper
Sources said that despite the Cotton Corporation of India (CCI) increasing the price of cottonseed (oilseed) by Rs 100 per quintal amid low arrivals, cotton Narma in Haryana and Punjab is being sold at a price below the Minimum Support Price (MSP). Palm and palmolein were already not being consumed and are not available at high prices. Hence there is decline in palm, palmolein. Soybean oil also declined due to fall in the prices of palm and palmolein. However, CCI has increased the price of cotton seed derived from cotton by Rs 100 per quintal. This is some relief to the cotton farmers but still the price of cotton seed is not in line with the cost of procurement at MSP. The impact of fall in the price of cotton seed also affects groundnut, cottonseed oil, cottonseed oil as well as other oils. For this reason, to improve the oil-oilseeds market, CCI will have to sell cotton seeds as per the MSP cost. He said that due to low arrivals, the prices of mustard oil and oilseeds remained unchanged while the business sentiment along with soybean oilseeds was affected. Sources said that after CCI increased the price of cotton seed, there is a slight improvement in groundnut oilseed but its price is still about 15-16 percent less than the MSP. Groundnut oil prices closed at previous levels amid weak local demand for groundnut cake.
The prices of oil and oilseeds were as follows:
- Mustard oilseeds – Rs 6,575-6,625 per quintal.
- Groundnut – Rs 5,900-6,225 per quintal.
- Groundnut Oil Mill Delivery (Gujarat) – Rs 14,200 per quintal.
- Groundnut refined oil – Rs 2,150-2,450 per tin.
- Mustard oil Dadri – Rs 13,600 per quintal.
- Mustard Pakki Ghani – Rs 2,300-2,400 per tin.
- Mustard Kachchi Ghani – Rs 2,300-2,425 per tin.
- Sesame Oil Mill Delivery – Rs 18,900-21,000 per quintal.
- Soybean oil mill delivery Delhi – Rs 13,200 per quintal.
- Soybean Mill Delivery Indore – Rs 12,950 per quintal.
- Soybean oil Degum, Kandla – Rs 9,100 per quintal.
- CPO ex-Kandla – Rs 12,950 per quintal.
- Cottonseed Mill Delivery (Haryana) – Rs 11,950 per quintal.
- Palmolein RBD, Delhi – Rs 14,100 per quintal.
- Palmolein ex- Kandla – Rs 13,200 (without GST) per quintal.
- Soybean grain – Rs 4,300-4,350 per quintal.
- Soybean loose – Rs 4,000-4,100 per quintal.
- Maize cake (Sariska) – Rs 4,100 per quintal.
(With inputs from PTI/Language)
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