Domestic markets affected due to collapse of international edible oil markets
23-Nov-2024 08:53 AM
Domestic markets affected due to collapse of international edible oil markets
★ The domestic edible oil and oilseed markets in India have been significantly impacted by the ongoing decline in international markets, particularly for edible oils. Here's a summary of the key developments:
Mustard Market
Prices in Mandis: Mustard prices have seen a sharp drop of 50-125 rupees this week compared to Monday.
Delhi: Down by 50 rupees to 6,500 rupees per quintal.
Jaipur: Down by 100 rupees to 6,600 rupees per quintal.
Tonk: Down by 200 rupees to 6,175 rupees per quintal.
Bharatpur: Fell by 130 rupees to 6,220 rupees per quintal.
Mustard Oil: As a result of the falling mustard prices, the price of mustard oil has also dropped.
Expeller Kachi Ghani: Fell by 10-40 rupees per 10 kg, depending on the region.
Delhi Expeller: Down by 30 rupees to 1,335 rupees per 10 kg.
Morena Kachi Ghani: Down by 20 rupees to 1,360 rupees.
Bharatpur Kachi Ghani: Down by 10 rupees to 1,310 rupees per 10 kg.
Mustard DOC: The price of mustard DOC (De-oiled Cake) has also fallen by 300-500 rupees per tonne this week.
Soya Market
Soya Plant Prices: Prices of soya plant have seen a decline across various states:
Madhya Pradesh: Down by 75-100 rupees per quintal.
Maharashtra: Down by 50-140 rupees per quintal.
Rajasthan: Down by 100 rupees per quintal.
Soya Oil: The price of refined soya oil has fallen by 40-60 rupees per 10 kg this week.
Market Conditions: The price decline has been driven by increasing arrivals of soya in the market. To support farmers, government agencies have purchased 1.18 lakh tons of soya, with the highest purchases coming from Madhya Pradesh (0.56 lakh tons) and Telangana (0.37 lakh tons).
Price Movement: The fall in soya prices has ranged from 100-200 rupees per quintal in various mandis.
Sunflower and Palm Oil
Sunflower Oil: Prices of sunflower oil have dropped by 30-45 rupees per 10 kg on Friday compared to Monday.
Palm Oil:
CPO Kakinada: Fell by 50 rupees to 1,230 rupees per 10 kg.
Palm Oil: Fell by 60 rupees to 1,300 rupees, with a similar decline seen in Haldia (down by 55 rupees).
International Market Impact: The global prices of palm oil have also dropped.
CPO November: Fell from 1,265 USD to 1,230 USD per ton.
RBD Palmolein: Fell from 1,235 USD to 1,195 USD per ton.
Impact on Other Oils
The decline in international prices has also had a ripple effect on other oils, including cottonseed oil, rice bran oil, and sesame oil. These oils have also seen price reductions as a result of the overall drop in edible oil prices globally.
Conclusion
The collapse in international edible oil markets, particularly palm oil and soy oil, has had a direct impact on domestic oilseed and edible oil markets in India. Mustard, soya, sunflower, and palm oil prices have all fallen, contributing to a decrease in mustard oil and soya oil prices as well. With prices being below MSP (Minimum Support Price) for soya, government agencies have been buying significant quantities to support farmers, which may stabilize the market to some extent in the short term. However, the overall downward trend in international prices continues to put pressure on domestic markets.