Festive Season may not Affect Edible Oil Prices
New Delhi: Edible oil prices are unlikely to go up in the upcoming festive season as soyabean and palm oil prices have declined in the wholesale and international markets. Companies and traders expect prices to fall by .₹ 2/kg in the coming days. In the Mumbai wholesale market, soyabean prices fell by 3% over the past one month to .₹ 615 per 10 kg and palmolein prices are down 10% to .₹ 520 per 10 kg. “Global and domestic prices of edible oil (soya and palm) are weak. We can pass on discount of .₹ 2/kg in retail in the coming days,” said Angshu Mallick, chief operating officer, Adani Wilmar.
Mallick said a clearer picture will emerge after the government decides on the duty restructure in edible oil. The industry has asked the government to increase import duty on crude oils to 20% –– it is 7.5% for crude palm oil. Industry wants the duty on refined oils to be raised to 35% from 20% now.
“Edible oil in consumer packs will be cheaper by about 2% by this month end and early September. In the same period we expect imports to see a further increase due to festivity,” said Satendra Aggarwal, chief operating officer at Ruchi Soya Industries.
Aggarwal said the huge crop of palm oil in Indonesia and Malaysia and soyabean in Brazil, Argentina and the US was making it viable to import.
The industry has asked the government to increase import duty on crude oils to 20%