Delhi: The impact of increasing geopolitical tension in the Middle East now seems to be reaching the Indian kitchen. The fear of the global supply chain being affected after the attacks on Iran by America and Israel has created a stir in the domestic oil-oilseeds market. On Saturday, the prices of almost all major oils and oilseeds closed strong in the markets across the country. Traders say that due to fear of supply disruption, there was sudden increase in buying in the market, due to which a sharp rise in prices was seen.
According to market sources, business activities were already slow ahead of Holi and the purchases required for the festival were almost complete. In such a situation the market was in normal condition. But after the news of attack on Iran, the fear of supply crisis changed the atmosphere. The possibility of an impact on the availability of imported oils created panic among traders and sent prices soaring.
Farmers’ arrivals decreased, mills increased prices
Due to low prices, farmers had reduced the arrival of mustard. Meanwhile, big oil mills of Kachchi Ghani increased the price of mustard by up to Rs 150 per quintal. Due to these reasons, mustard oilseed reached Rs 6,475-6,500 per quintal. Mustard oil Dadri closed at Rs 13,450 per quintal and Kachi Ghani at Rs 2,285-2,430 per tin.
More pressure due to increase in import duty price
The government also announced an increase in the import duty price of imported edible oils late in the night. The price on crude palm oil (CPO) has been increased by Rs 26 per quintal, on palmolein by Rs 124 and on soybean degum by Rs 15 per quintal. This will make imports expensive and may put further pressure on prices in the domestic market.
Rise in other oils and oilseeds also
Groundnut reached Rs 7,000-7,475 per quintal, soybean grain reached Rs 5,350-5,400 and soybean oil mill delivery Delhi reached Rs 14,450 per quintal. CPO in Kandla closed at Rs 11,775 and palmolein RBD Delhi closed at Rs 13,600 per quintal.
Comments are closed.