Inflation relief! Huge fall in the price of mustard oil
Mustard oil prices have seen a substantial fall on Friday amid a boom in foreign markets. In the Delhi oil-oilseeds market, the prices of oil-oilseeds closed with a mixed trend. On the one hand, while the prices of mustard oil-oilseeds and soybean grain declined, the prices of other edible oils like groundnut solvent refined, soybean oil, crude palm oil (CPO) and palmolein closed showing improvement. The prices of rest of the oilseeds remained as before.
Traders said that the Malaysia Exchange was up 3.55 per cent, while the Chicago Exchange is currently gaining 1.5 per cent. Sources said there is a heavy betting environment in Malaysia and CPO prices there have further strengthened by 3.5 per cent while buying is very low. To curb oil prices and increase oil supply, duties were reduced by India, after which there has been a record increase in prices in Malaysia while buying is at a very low level. Why would anyone buy a CPO when the prices of light oils and heavy oils like CPO are almost around the corner? He said that consumers are suffering due to the arbitrariness of Malaysia and Indonesia.
Sources said that the CPO price used to be $100-150 per tonne below soybean oil, but now the CPO price is about $10 per tonne more than soybean oil. There are no buyers due to the cost of CPO and people are turning to soybean and groundnut oil in light oils.
Sources said that the government has reduced the fees and now what is the way left with it? How will the government control arbitrariness and speculation in foreign markets? He said that the dependence on imports can be reduced only by increasing the production of oilseeds in the country. For this, the government will have to ensure remunerative prices along with incentives to the farmers, only then the country can walk on the path of self-reliance in the matter of oilseeds.
Increasing demand for mustard oil
Sources said that the demand for mustard oil is increasing and the difference in its price from other oils, which used to be about Rs 50 a kg, has become very less. He said that the ups and downs in mustard will continue for one and a half months till the arrival of the new crop. At present, the prices of mustard oil and oilseeds closed with a substantial fall.
Sources said that at present, groundnut sits cheaper as compared to other oils and hence its demand is increasing in light oils, due to which the price of groundnut solvent refined has improved by about Rs 50 per quintal. Groundnut grain and groundnut oil prices in Gujarat remained at the previous level.
