cotton An all-round fall in the prices of all oils and oilseeds was seen in the major markets of the country on Wednesday due to the fall in the price of cottonseed meal in the futures trade at the time of arrival of the crop in the markets, due to which the business sentiment of all other oils and oilseeds was affected. During this period, the prices of mustard, groundnut and soybean oil-oilseeds, crude palm oil (CPO) and palmolein oil and cottonseed oil closed showing losses. Heavy decline continues in Malaysia and Chicago Exchange. There was a heavy downpour in Chicago last night as well. Market sources said that markets abroad have collapsed. Meanwhile, even before the arrival of cotton Narma started in the mandis, the prices of cottonseed meal suddenly started weakening in the futures trade. Two months before the start of arrival, the price of cottonseed meal was around Rs 3,800 a quintal, which has now come down to Rs 2,620 a quintal (December contract).
Why is the price of cottonseed meal falling?
Cotton Narma is being purchased by a leading organization in the cotton sector at the minimum support price, but instead of stocking the cotton seed, that organization is selling it at a price much lower than the cost. Due to this also the price of cottonseed meal is falling. He said that the highest consumption in the country is of cottonseed cake and there is no alternative to it. The annual consumption of this mortar is about 13 million tonnes. Now the fall in the price of cottonseed meal is affecting the prices of other oils and oilseeds also. Even in futures trading, he does not have stock commensurate with the number of deals being done. A certain percentage of the stock of the fixed deals should be in the futures market but it is not so.
Cotton production decreased
Data released today by the Cotton Association of India (CAI) shows that cotton production has declined this year. Amidst such a situation, it is surprising that the future price of cottonseed meal is falling. Whatever may be the intention behind this, it is certain that this situation is extremely fatal for the country to move towards self-reliance in the matter of oil and oilseeds. Sources said that those elements who advocate opening futures trading of oilseeds should be asked the reason for the fall in the prices of cottonseed meal, otherwise there is a need to keep oil-oilseeds separate from futures trading. This will protect oilseed farmers from further possible looting. Sources said that about 10 years ago, when the price of coarse grain i.e. maize was Rs 10-12 per kg, the price of cottonseed cake used to be Rs 23-24 per kg i.e. almost double. But today when the price of cottonseed meal is Rs 26 per kg, the price of maize is Rs 27-28 per kg. Perhaps this fact is the main reason for the decline in cotton production in the country.
The prices of oil and oilseeds were as follows:
- Mustard oilseeds – Rs 6,450-6,500 per quintal.
- Groundnut – Rs 5,900-6,225 per quintal.
- Groundnut Oil Mill Delivery (Gujarat) – Rs 14,250 per quintal.
- Groundnut refined oil – Rs 2,150-2,450 per tin.
- Mustard oil Dadri- Rs 13,450 per quintal.
- Mustard Pakki Ghani – Rs 2,250-2,350 per tin.
- Mustard Kachchi Ghani – Rs 2,250-2,375 per tin.
- Sesame Oil Mill Delivery – Rs 18,900-21,000 per quintal.
- Soybean Oil Mill Delivery Delhi – Rs 13,000 per quintal.
- Soybean Mill Delivery Indore – Rs 12,750 per quintal.
- Soybean oil Degum, Kandla – Rs 9,025 per quintal.
- CPO Ex-Kandla – Rs 12,800 per quintal.
- Cottonseed Mill Delivery (Haryana) – Rs 11,600 per quintal.
- Palmolein RBD, Delhi – Rs 14,050 per quintal.
- Palmolein Ex- Kandla – Rs 13,000 (without GST) per quintal.
- Soybean grain – Rs 4,265-4,315 per quintal.
- Soybean loose – Rs 3,965-4,065 per quintal.
- Maize cake (Sariska) – Rs 4,100 per quintal.
(With inputs from PTI/Language)
Latest Business News
