Despite the government increasing the import duty on edible oils, the prices of crude palm oil (CPO) and palmolein oil fell instead of rising in the first trading session of the year in the country's oil-oilseeds market on Wednesday. Cottonseed oil prices fell due to the fall in the price of imported oils affecting the business sentiment and soybean oil prices fell due to the reduction in import duty. On the other hand, the decision of CCI to increase the price of cottonseed affected groundnut seed (oilseed) and there is a slight improvement in its price. But the prices of groundnut oil remained at the previous level amid the already very weak prices of groundnut. Due to the impact on business sentiment, the prices of mustard oil-oilseeds, soybean oilseeds also remained at the previous level.

Increase in import duty on edible oils

Malaysia and Chicago Exchange were closed on the occasion of New Year. Market sources said that the government has increased the import duty on edible oils and the import duty on CPO has been increased by Rs 106 per quintal and on palm oil by Rs 117 per quintal. On the other hand, the import duty on soybean degum has been reduced by Rs 28 per quintal. This is a step taken by the government in the right direction. He said that when the export duty on edible oils is increased in Malaysia, then as a remedial measure, the government of our country should also increase the import duty in the interest of the country. Although, the price of palm and palm oil is already higher than the indigenous oilseeds, but due to the price of soybean oil being cheaper than mustard and groundnut oils, it is becoming difficult to consume it in front of the indigenous oilseeds. To avoid these uncertainties, we will have to focus on increasing our oilseed production and minimise our dependence on imports.

Palm oil became cheaper

Sources said that despite the Cotton Corporation of India (CCI) increasing the price of cottonseed (oilseed) by Rs 100 per quintal amid low arrivals, cottonseed is being sold below the minimum support price (MSP) in Haryana and Punjab. Palm and palmolein were already not being consumed and there are no buyers for it at high prices. Therefore, there is a decline in palm and palmolein. Soybean oil also declined due to the fall in the price of palm and palmolein. However, CCI has increased the price of cottonseed seed produced from cotton by Rs 100 per quintal. This has brought some relief to cotton farmers, but even now the price of cottonseed is not in accordance with the purchase cost at MSP. The effect of the reduction in the price of cottonseed seed is also seen on groundnut, cottonseed oil, cottonseed as well as other oils. Due to this, to correct the oil-oilseed market, CCI will have to sell cottonseed as per the MSP cost. He said that due to low arrival, the prices of mustard oil and oilseeds remained unchanged amid the impact on business sentiment along with soybean oilseeds. Sources said that after CCI increased the price of cottonseed, there is a slight improvement in groundnut oilseeds, but its price is still about 15-16 percent less than the MSP. Groundnut oil prices closed at the previous level amid weak local demand for groundnut cake.

The prices of oilseeds were as follows:

• Mustard oilseeds - Rs 6,575-6,625 per quintal.
• Groundnut - Rs 5,900-6,225 per quintal.
• Groundnut Oil Mill Delivery (Gujarat) - Rs 14,200 per quintal.
• Groundnut Refined Oil - Rs 2,150-2,450 per tin.
• Mustard oil Dadri – Rs 13,600 per quintal.
• Mustard Pakki Ghani - Rs 2,300-2,400 per tin.
• Mustard Crude Oil - Rs 2,300-2,425 per tin.
• Sesame Oil Mill Delivery - Rs 18,900-21,000 per quintal.
• Soybean oil mill delivery Delhi - Rs 13,200 per quintal.
• Soybean mill delivery Indore - Rs 12,950 per quintal.
• Soybean oil Degum, Kandla - Rs 9,100 per quintal.
• CPO ex-Kandla – Rs 12,950 per quintal.
• Cottonseed Mill Delivery (Haryana) - Rs 11,950 per quintal.
• Palmolein RBD, Delhi – Rs 14,100 per quintal.
• Palmolein ex-Kandla – Rs 13,200 (without GST) per quintal.
• Soybean grain - Rs 4,300-4,350 per quintal.
• Soybean loose - Rs 4,000-4,100 per quintal.
• Maize bran (Sariska) - Rs 4,100 per quintal.