Edible oil prices drop from 8 to 10 yen per kg in one month, further drop likely: solvent extractors
The Indian Solvent Extractors Association’s (SEA) decision to reduce the prices of edible oils during the Diwali festival helped lower prices from 8 to 10 yen per kg, according to SEA chairman Atul Chaturvedi . He hinted at a further reduction in the coming days.
In a statement, he said the SEA advised its members before Diwali to cut prices to the minimum. The past few months have been trying for domestic consumers due to the high international prices of edible oils such as palm, soybean and sunflower.
He said the Center had also reduced import duties on edible oils to provide consumer relief.
“We are happy to confirm that all of these actions have caused edible oil prices to drop by around 8-10 yen per kg over the past 30 days,” he said.
Giving comparative figures for domestic wholesale prices of some edible oils on October 14 and December 3 in Mumbai, he said the price of peanut oil has increased from 1,450 yen per 10 kg unit to 1,350 yen; cottonseed oil (washed) prices fell to 1,165 yen from 1,380 yen per 10 kg unit; sunflower oil prices fell to 1,180 yen from 1,330 yen per 10 kg unit; and rapeseed oil prices cooled to 1,640 yen from 1,720 yen per 10 kg unit.
During the above-mentioned period, the prices of refined soybean oil fell to 1,230 yen from 1,280 yen per 10 kg unit, and those of RBD palmolein to 1,180 yen from 1,220 yen per unit. 10 kg unit.
Prices to keep under control
He hoped that a large soybean crop of around 120 lakh tonnes (lt) and a groundnut crop of around 80 lt would keep prices under control. The high prices of mustard seeds had prompted a massive response from the supply side of farmers, who had planted the crop on a record 77.62 lakh hectares. That figure is nearly 30% higher and could increase the availability of national mustard oil by 8 to 10 liters in the coming year, he said.
Prices to cool down globally
Regarding the global edible oil scenario, Chaturvedi said the trend is relatively bearish and prices will continue to fall. This is amply demonstrated by lower quotes for the coming months for palm and soybean oil, he said.
C&F international prices for some imported edible oils also declined between October 14 and December 3. C&F RBD palmolein prices fell from $ 1,340 per tonne on October 14 to $ 1,325 on December 3; crude sunflower oil from $ 1,450 per tonne to $ 1,435 and crude soybean oil from $ 1,440 per tonne to $ 1,429.
However, the C&F price of crude palm oil fell from $ 1,350 per tonne to $ 1,375 during the period.
However, a slightly bullish factor is the weakness of the rupee, which increases the cost of imports, he said.
With the likelihood of lower import parities, SEA members agreed to pass the cost reduction on to their consumers. “We believe our members would reduce the price by about 3-4 per kg for the foreseeable future by our members. This should provide relief to our edible oil consumers this holiday season, ”he added.