Edible oil prices may fall as domestic arrival of seeds expected to pick up

The country, which is heavily dependent on imports, had suffered because of a drop in production in Argentina and Brazil as well as reduction in palm oil production in Malaysia and Indonesia.

Prices of edible oil are set to soften as domestic arrival of oil seeds is expected to improve soon. Meanwhile, in response to an appeal by Atul Chaturvedi, president of Solvent and Extractors’ Association of India (SEA), member companies have started reducing the price of edible oil – a move that will help consumers get the same product at Rs 4-7/litre less than retail prices.

Since the last few months, the spiralling cost of edible oil has burnt a hole in the consumer’s pocket. The country, which is heavily dependent on imports, had suffered because of a drop in production in Argentina and Brazil as well as reduction in palm oil production in Malaysia and Indonesia.

Also, shortage of vessels to transport oil saw prices going out of control. The central government had to step in multiple times since February to control the price of the commodity. The steps included complete waiving off of custom duty.

As president of SEA, Chaturvedi had appealed to his member companies to reduce prices ahead of the festive season. A statement issued by SEA said: “Many key players including M/s. Adani Wilmar Ltd, Ahmedabad, Ruchi Soya Industries Ltd, Indore, M/s Gemini Edibles & Fats India Pvt. Ltd, Hyderabad, M/s. Modi Naturals Ltd, Delhi, M/s. Gokul Refoils and Solvent Limited, Sidhpur, M/s. Vijay Solvex Ltd, Alwar, M/s. Gokul Agro Resources Ltd, Ahmedabad, N.K. Proteins Pvt. Ltd, Ahmedabad, have already committed and reduced wholesale bulk prices by Rs.4,000 to Rs.7,000 per ton (Rs.4-Rs.7 per litre) and others are also following to reduce the edible oil prices.”

Speaking to Indian Express, Chaturvedi said the industry expects a bumper crop of soybean and ground nut to hit the markets soon. “Also, the mustard crop is expected to be 25-30 per cent higher than normal. So, we expect prices to soften. Overall, we feel softening of prices is round the corner,” he said.
At present, most edible oils are retailing between Rs 180 and 200/litre, which is Rs 30-50/litre higher than last year’s price.

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