Due to the rise in prices in foreign markets amid the Russia-Ukraine war, almost all oil-oilseeds prices in the oil-oilseeds markets across the country closed showing improvement. Probably this is the first time when the price of mustard oil and mustard refined has become cheaper than palmolein oil.
Traders said that almost all edible oils prices have strengthened as edible oil supplies were affected due to Russia-Ukraine war last week. In foreign countries, the prices of domestic oil-seeds like mustard, groundnut are cheaper than imported oils.
Palmolein oil is being sold at Rs 162 per kg in the wholesale market, while mustard oil is selling at Rs 150 per kg and refined mustard at Rs 154 per kg. The maximum price of mustard oil in the market should not exceed around Rs 160-162 a litre.
Emphasis on investigation and raids to stop hoarding
Sources said government officials are insisting on investigations and raids to check hoarding to improve the oil supply situation. But they also have to note that anyone who wants can import edible oils like soybean, CPO in any quantity and there is no ‘stock limit’ on this.
On the other hand, the prices of indigenous edible oils are cheaper than imported oils, so who will bother to hoard? Instead, if the government keeps a watch on the maximum retail price (MRP) of all oil companies, more than half the problem will be solved, he said.
Taking advantage of MRP, it is being sold by retail shopkeepers and mall shops at expensive prices. If a team is formed by the government to investigate this, then consumers will get its direct benefit.
Sources said that the big oil traders import edible oils at the rate of kg but sell it at the rate of liter in the country’s markets. It should also be monitored whether these companies reduce the price in the same proportion or not. Out of 1,000 grams of edible oil per kg, consumers get only about 912 grams of oil when they buy it in liters.
Sources said that the price of mustard seeds improved by Rs 40 to Rs 7,490-7,540 per quintal last week due to strong demand due to cheaper prices. Mustard Dadri oil improved by Rs 150 to close at Rs 15,000 a quintal in the weekend under review. On the other hand, mustard, Pakki Ghani and Kachchi Ghani oil also edged higher by Rs 20 each to Rs 2,370-2,445 and Rs 2,420-2,520 per tin (15 kg) respectively.
Sources said that amid a firm trend in overseas markets, soybean grain and soybean loose prices closed at Rs 7,775-7,825 and Rs 7,475-7,575 per quintal, respectively, with gains of Rs 25 each last week. Similarly, soybean oil prices also improved during the week under review. Soyabean Delhi, Indore and Soyabean Degum prices closed at Rs 16,850, Rs 16,300 and Rs 15,300 per quintal, showing a correction of Rs 850, Rs 600 and Rs 700, respectively.
In the week under review, the prices of groundnut oil and oilseeds closed showing gains as compared to the closing price of the previous weekend. Groundnut seeds improved by Rs 75, groundnut oil Gujarat by Rs 250 to Rs 6,800-6,895 and Rs 15,750 per quintal, respectively. Groundnut Solvent Refined also improved by Rs 40 to Rs 2,610-2,800 per tin.
Crude palm oil (CPO) also improved by Rs 300 to Rs 14,200 a quintal in the reporting weekend amid a rally in overseas markets. The price of Palmolein Delhi also improved by Rs 400 to Rs 16,250 and that of Palmolein Kandla improved by Rs 400 to close at Rs 15,000 per quintal. Cottonseed oil prices improved by Rs 400 to close at Rs 15,600 per quintal in the week under review.
Sources said last year that farmers got good prices for their oilseed crops, they have increased the production of mustard this time. This time, waiting for the right price, they are bringing less goods to the mandis. In the month of April last year, the arrival of mustard in the mandis was 10-12 lakh sacks, which this time has come down to about five lakh sacks.
Sources said that almost all oilseeds, including mustard, groundnut, soybean oil-oilseeds, CPO, palmolein, cottonseed oil, improved due to general bullish trend and supply affected due to war. Sources said that the government will have to pay attention to increase the production of oil and oilseeds, only then we will become self-reliant in this matter. This will save our foreign exchange. At the same time, Gross Domestic Product (GDP) and employment will increase.