Edible oils and oilseeds become expensive due to West Asia war and weakness of rupee, know the complete condition of oil market

New Delhi: Prices of almost all edible oils and oilseeds remained firm in the country’s oil and oilseeds markets last week due to increasing supply concerns due to the war environment in West Asia and the weakening of the rupee against the dollar as well as reduced arrivals. Due to these reasons, the prices of mustard, soybean and groundnut oil-oilseeds, crude palm oil (CPO) and palmolein and cottonseed oil closed showing strength. Markets remained closed on Saturday due to ‘Eid’.

Sources informed about the market said that the market abroad strengthened last week also. Since the outbreak of the war, the price of soybean degum oil has increased to $1,325-1,330 per tonne from the pre-war price of around $1,200 per tonne. Edible oil prices also rose due to fears that the supply of edible oil and cooking gas would be affected as the war escalated.

Last week, the rupee also closed at its all-time low of 93.53 per dollar against the dollar. This fall of rupee has made imports more expensive. The freight freight from Argentina for import, which was 70-75 dollars per ton before the war, has now increased to about 140 dollars per ton. In rupee terms, freight rates have increased by Rs 6-6.50 per kg. On top of that, the cost of insurance of imported edible oil has also increased. Farmers are also bringing less arrivals in the market. Amidst all these circumstances, the prices of edible oils increased.

He said that the arrival of mustard last week was around 10 lakh bags as against the maximum of 14 lakh bags in the previous week. Farmers are selling their goods intermittently. They are getting better prices than the Minimum Support Price (MSP). In today’s circumstances, those critics should reconsider their arguments that – ‘inflation increases due to increase in the prices of edible oils’ – how appropriate is it.

Sources said that in the current situation the production of mustard is high, farmers are getting higher prices than MSP. Due to the West Asia war, the prices of imported edible oils are skyrocketing. In this situation, India is in a good position in this matter because of indigenous oilseeds. Refined mustard seeds are also being made. There is demand for it also.

Looking at these, it can be said that increasing production and creating a market for indigenous oil and oilseeds can be the right step. In today’s war-like situation, dependence on imports of almost 60 per cent for a sensitive food item of common consumption like edible oil is dangerous for the sovereignty of the country. On the other hand, it should also be understood why those critics who used to leave no stone unturned in complaining about the inflation of edible oils are not being heard today. The war has increased the prices of edible oils, then who will control this inflation? Isn’t the answer to increase the production of indigenous oil and oilseeds?

Sources said there could be a supply problem of soybean oil due to the war. Therefore, the government needs to maintain stocks of oilseeds like soybean, mustard and groundnut which will be useful in case of abnormal prices. If possible, mustard should be purchased by giving bonus to the government because there is no alternative to edible oils like groundnut and mustard.

Sources said that the arrival of cottonseed is decreasing and the price of cottonseed oil is about Rs 10 per kg less than soybean refined. Therefore, it has good demand among food companies. Sources said that last week mustard seeds closed at Rs 6,950-6,975 per quintal with an improvement of Rs 250. Mustard oil sold in Dadri Mandi closed at Rs 14,600 per quintal with an improvement of Rs 700, Mustard Pakki and Kachchi Ghani oil closed at Rs 2,430-2,530 and Rs 2,430-2,575 per tin (15 kg) with an improvement of Rs 80 each, respectively.

In the week under review, wholesale prices of soybean grains and soybean loose closed at Rs 5,700-5,750 and Rs 5,300-5,450 per quintal, up by Rs 50-150 respectively. Similarly, soybean oil in Delhi closed at Rs 16,300 per quintal with an improvement of Rs 750, soybean oil in Indore closed at Rs 15,700 with an improvement of Rs 800 and soybean degum oil closed at Rs 13,200 per quintal with an improvement of Rs 1,250. The price of groundnut oilseed also improved by Rs 250 to Rs 7,250-7,725 per tin, groundnut oil Gujarat improved by Rs 650 to Rs 17,550 per tin and groundnut solvent refined oil improved by Rs 90 to Rs 2,770-3,070 per tin.

In line with the general strengthening trend in business sentiment in the week under review, the price of CPO oil increased by Rs 550 to Rs 13,600 per quintal, the price of Palmolein Delhi increased by Rs 650 to Rs 15,400 per quintal and the price of Palmolein X Kandla also increased by Rs 650 to close at Rs 14,350 per quintal. In line with the general bullish trend, cottonseed oil price closed at Rs 14,700 per quintal, showing a rise of Rs 650.