Festive Sea­son may not Af­fect Ed­i­ble Oil Prices

The Economic Times - - Finance & Commodities - Mad­hvi.Sally@ times­group.com

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%

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