Despite the declining trend in foreign markets, mustard oil and oilseeds saw a rise in the Delhi oil-oilseeds market on Thursday. While palmolein and soybean oil prices fell due to weakness in global markets. According to market sources, there was a fall of about 3.5 per cent in the Malaysia Exchange, while the Chicago Exchange was down by about one per cent.
The wholesale price in Delhi Mandi was as follows- (Rs. per quintal)
CPO and palmolein oil prices very expensive
Troy said that the prices of foreign oils especially crude palm oil (CPO) and palmolein oil are very expensive and there are no buyers. At present, the shortage of these oils is being met by mustard. In the last years, due to good price of oilseeds to the farmers, there has been a substantial increase in the production of mustard this time. The consumption of mustard is increasing and on Thursday, about 10 lakh sacks of mustard arrived in the mandis.
If diesel becomes expensive by one rupee, the freight will increase so much, it will affect the prices of pulses, sugar to edible oil.
When imported oils are selling expensive, it will be difficult to procure mustard at the Minimum Support Price (MSP), hence the need to purchase it at market rate. Due to the cost of imported oils, its shortage is currently being met through mustard and groundnut. More pressure is on mustard and due to high yield, it is being refined at most places.
Farmers need to be encouraged
Sources said that groundnut oil – oilseeds and cottonseed oil prices remained unchanged amid normal trade. While soybean oil prices closed with losses due to fall in overseas markets. Sources said that a permanent and safe way to reduce the volatility of oil prices and dependence on imports, can only be to increase oil-seeds production in the country. In order to achieve self-reliance, farmers need to be given incentives, as they have the capacity to increase production, which is proved by the increase in mustard production this time. For this, the government will have to give assurance of ensuring remunerative price to the farmers.