Prices of mustard, groundnut oil and cottonseed oil have rebounded in the Delhi oilseeds market due to festive demand last week, but CPO, palmine and soybean oil prices showed a softening amid import tariffs. Traders said last week that the government reduced soybean and sunflower import tariffs from 38.50 per cent to 30.25 per cent to offset the shortage of edible oil in the country. The cut was made until September 30, as the next crop of soybean is expected to arrive in October, with the quality expected to be better than before. In addition, soybean oil-free oil (DOC) demand for poultry and livestock is also growing in the country, allowing the government to import DOC.
Experts believe that when the next crop of soybean grows, the problem of the DOC will go away. Experts said that considering the rate at which tariffs have been reduced, consumers and farmers can claim that they have not received any special benefit of import duty reduction. According to a reduction in soybean, the price of soybean should be reduced by 7.5 per kg, while the price of oil in the spot market is only one and a half rupees.
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According to experts, the benefit of the import tariff reduction is not passed on to domestic consumers and farmers as foreign oil companies get. In futures trading, the soybean contract price for delivery in October (ie, futures trading price for next crop) is 32 percent lower than the spot price or Rs 32-33 per kg. However, this price is only until September 30 and aims to end the situation of edible oil shortages in the domestic market during the festival. But the effect of this decrease was particularly pronounced on soybean oil, CPO and palmoline condla, causing their prices to close with a loss in review over the weekend.
Sources said the price of cottonseed oil is currently moving at or roughly above ground level. Generally the price of mustard oil is around Rs 20-30 per kg more than cottonseed, but the demand for peanut oil has increased due to price increases, which has resulted in the closure of prices of chickpea oil and oilseeds. He said that after September 20, after the new cottonseed crop came up in Punjab and Haryana, there would be little change in the situation.
Last week, the price of mustard was Rs 7,950-7,975 per quintal in the spot market in Jaipur. 8,025 to -8,100, which includes the Goods and Services Tax (GST) and additional charges imposed separately. There is a huge demand for mustard in terms of festivals and the demand for mustard for green vegetables in the winter is expected to increase further. Given this situation, the price of mustard oil and oilseeds has also been covered with improvement.
He said the impact of the reduction in import tariffs compared to last weekend shows a softer trend in CPO and palmoline. Market sources said there is no mustard inventory except farmers, cooperatives and traders. Oil crushing mills have a small inventory of mustard. In such a situation, for the benefit of small farmers, arrangements should be made to produce seed stock for the upcoming sowing for tuvi through a cooperative such as HAFED.
Last week, the price of mustard seed went up from Rs 7,975-8,025 per quintal last weekend. Increased from 125 to 8,025-8,100. Mustard Dadri oil prices have improved by Rs 680 to Rs 16,580 per quintal.
The Sarson Pakki Ghani and Kachchi Ghani tins rose by Rs 5 each to Rs 2,560-2,610 and Rs 2,645-2,755 respectively.
Soybean cereal and loose soybean prices are expected to increase by Rs. 375 and Rs.300 to Rs.9,300-9,400 and Rs.9,000-9,050 respectively. Soybean Delhi (refined) and soybean decam prices fell by Rs100 and Rs150 per quintal, respectively, to Rs15,100 and Rs13,650 per quintal, reducing import duty on soybean potato over the weekend. The price of soybean indoor was at a standstill.
The peanuts (oilseeds) closed at Rs6,620-6,765 with an improvement of Rs125 for the week under review, while the groundnut was Rs.15,100 for the Gujarat quintal. 350 closed with correction. Peanut solvent refined prices have improved from Rs 55 per tin to Rs 2,330-2,460.
Crude palm oil (CPO) prices fell by Rs 170 per quintal to Rs 11,950 a quintal over the weekend due to the import tariff. If Palmolin Delhi prices remain unchanged, the Palmoline Kandla oil is closing at Rs 12,600 per quintal and is showing a loss of Rs 100. The price of cottonseed oil went up from Rs 100 to Rs 14,500 per quintal last weekend.
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