Country Last week, due to increase in the arrival of new mustard crop in the major markets of the country, there was pressure on all the oilseeds in the oil-oilseeds markets and their prices closed showing losses. Sources knowledgeable about the market said that during the week under review, about 13 lakh to 16 lakh bags of mustard arrived in the mandis. However, this inflow was mostly from smallholder farmers who needed money. Big farmers were still seen waiting for the government to purchase mustard at Minimum Support Price (MSP). He said that meanwhile a rumor was also spread that the import of ‘soft oil’ like sunflower and soybean degum is going to increase next month. He said that perhaps this rumor might have been spread with the aim of breaking the morale of mustard farmers and motivating them to sell their produce at lower prices. Amidst the increasing arrival of mustard, there was pressure on other oilseeds and a decline was seen in almost all the oilseeds. Sources said that there should be concern considering the condition of soybean this time.
Local soybean oil is not available
Despite being 5-6 rupees cheaper per liter than palm palmolein in bulk, imported soybean degam is being sold 20-30 rupees more per liter (at a premium price) than palm palmolein in retail. At the same time, amidst the weak wholesale prices of cheap imported oil, the millers are finding it difficult to crush the high cost local soybean oil and perhaps due to this reason, soybean oilseeds are being purchased at a price much lower than the MSP. Whereas in the last few years, farmers have been getting much higher prices than MSP for soybean crop. Due to these reasons, consumption of local soybean has become difficult. Now the fear is that next time soybean sowing may be affected.
Sunflower area is not increasing despite increase in MSP
Sources said that we have seen this earlier in the case of sunflower and the result is that today despite increasing the MSP, farmers are not ready to increase the area of sunflower, the area under its cultivation is shrinking. This fear is more in the case of groundnut and soybean that the area under their cultivation may start decreasing. In the year 1997-98, sunflower was sown in 26.76 lakh hectares, but at present this area has remained very less. In the year 1997-98, the country was almost self-sufficient in sunflower and today we are dependent on imports for sunflower oil by about 98 percent. The second biggest problem is that of soybean de-oiled cake (DOC), which is used as chicken feed. Most of the soybean producing farmers intend to earn from DOC during soybean oil crushing. But at present low prices are being given for soybean DOC in foreign countries and its local demand is weak. Soybean producing farmers want to be given subsidies to encourage the export of DOC. Sources said that the situation is that imported sunflower oil costs Rs 82-83 per kg, while the higher cost domestic sunflower oil costs around Rs 160 per kg, so who will be able to stop it from becoming non-competitive?
Mustard price fell
Compared to last weekend, the wholesale price of mustard seeds fell by Rs 150 and closed at Rs 5,275-5,315 per quintal. The price of Mustard Dadri oil fell by Rs 250 and closed at Rs 10,100 per quintal. Mustard Pakki and Kachchi Ghani oil fell by Rs 40 and Rs 30 respectively to close at Rs 1,710-1,810 and Rs 1,710-1,825 per tin (15 kg). In the week under review, soybean grain and loose prices fell by Rs 90 each and closed at Rs 4,555-4,575 per quintal and Rs 4,355-4,395 per quintal respectively. Similarly, the prices of Soybean Delhi, Soybean Indore and Soybean Degum oil fell by Rs 700, Rs 600 and Rs 650 respectively and closed at Rs 10,500, Rs 10,300 and Rs 9,000 per quintal respectively.
Peanut prices also fell
In the week under review, groundnut oilseed prices fell by Rs 45 and closed at Rs 6,080-6,355 per quintal due to impact on buying due to expensive prices. Groundnut Gujarat and Groundnut Solvent Refined Oil also declined by Rs 200 and Rs 25 respectively to close at Rs 14,800 a quintal and Rs 2,225-2,500 per tin, respectively. In the week under review, crude palm oil (CPO) fell by Rs 125 and closed at Rs 9,100 per quintal. The price of Palmolein Delhi fell by Rs 350 to Rs 10,300 per quintal and the price of Palmolein X Kandla oil fell by Rs 450 to Rs 9,300 per quintal. In line with the general falling trend, cottonseed oil also fell by Rs 300 and closed at Rs 9,300 per quintal.
Latest Business News