New Delhi: Amid financial crunch, the impact of importers selling oil below cost at Kandla port was seen on the domestic oil-oilseeds market last week. A decline was recorded in the prices of almost all major oils and oilseeds. However, due to continuous demand, the prices of groundnut oil and oilseeds remained stable.
Mustard demand weak, price decline
According to market sources, mustard consumption is being affected due to high prices. Due to weak demand, the prices of mustard oil and oilseeds came down last week. Crops are not being consumed at higher prices, while farmers are avoiding selling their produce at lower prices.
The arrival of new crop cottonseed has also started in the markets. Due to this, there was pressure on the prices of cottonseed oil and its price declined during the week.
Cheap imported soybean oil becomes reason for pressure
Due to weak demand for soybean oil-free cake (DOC), soybean oilseed prices also closed lower than last weekend.
According to market sources, imported soybean oil is being sold at Kandla port at Rs 10-11 per kg less than the cost. This has been cited as the main reason for the fall in soybean oil prices.
According to sources, the cost of soybean oil at the port is around Rs 127 per kg, while it is being sold at around Rs 116.50 per kg.
Palm oil also under pressure
The cost of preparing palmolein by refining crude palm oil (CPO) at Kandla port is around Rs 150 per kg. At the same time, it costs around Rs 145. Price per kgCha is going.
The prices of palm and palmolein oil also declined last week due to selling below cost.
Prices of groundnut oil and oilseeds stable
On the other hand, there is continuous demand for groundnut oil in the market. This was the reason why the weakness in the market did not have much impact on the prices of groundnut oil and oilseeds. Last week, the prices of groundnut oil and oilseeds remained stable.
Prices of major oils and oilseeds
| oil-oilseeds | week change | closing price |
|---|---|---|
| mustard seeds | fall of 150 | 8,150-8,200/quintal |
| Mustard Oil Dadri | fall of 350 | 16,450/quintal |
| Mustard Pakki Ghani | 50 drop | 2,685-2,785/tin |
| mustard raw ghani | 50 drop | 2,685-2,835/tin |
| soybean grain | fall of 250 | 6,050-6,100/quintal |
| soybean loose | fall of 250 | 5,900-6,000/quintal |
| soybean oil delhi | fall of 200 | 15,300/quintal |
| soybean indore oil | fall of 200 | 15,100/quintal |
| soybean degum oil | 300 drop | 11,650/quintal |
| peanut oilseed | steady | 7,600-8,175/quintal |
| groundnut oil gujarat | steady | 17,500/quintal |
| Peanut Solvent Refined Oil | steady | 2,755-3,055/tin |
| cpo oil | ₹150 fall | 13,975/quintal |
| Palmolein Delhi | fall of ₹325 | 15,700/quintal |
| palmolein x kandla | fall of ₹225 | 14,500/quintal |
| cottonseed oil | ₹500 decline | 15,700/quintal |
Note: The prices of mustard solid and raw ghani and groundnut solvent refined oil are per 15 kg tin.
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