Edible Oil Price Update: Mustard, Groundnut, and Soybean Oils Fall, Check the Latest Prices Here
The falling price of cottonseed cake is due to an industry organization selling cottonseed below cost, coupled with weak futures market conditions and inadequate stock. Despite a drop in cotton production, the price decline is impacting other oilseed prices. This situation raises concerns about India’s self-reliance in oilseed production, as cottonseed cake remains a key consumption product.
On Thursday, the prices of oilseeds in major markets across the country declined. The fall in cottonseed prices in futures trading, caused by the arrival of the cotton crop, led to a drop in prices for other oilseeds. Mustard, groundnut, and soybean oilseeds, along with crude palm oil (CPO), palm olein oil, and cottonseed oil, all closed lower. The decline was also seen in the Malaysia and Chicago exchanges, with the Chicago market experiencing a significant drop the previous night.
Additionally, the prices of cottonseed cake started weakening in futures trading even before the arrival of cottonseeds in the markets. Two months ago, cottonseed cake was priced at around Rs 3,800 per quintal, but it has now fallen to Rs 2,620 per quintal (December contract).
Why is the price of cottonseed cake falling?
A major cotton industry organization is buying cotton at the minimum support price but is selling the cottonseed at a much lower price than its cost. This is contributing to the falling price of cottonseed cake. The price drop is also linked to the fact that cottonseed cake is the most consumed product in the country, with no alternatives available. Its annual consumption is about 1 crore 30 lakh tonnes. However, the low price is also affecting other oilseed prices. Additionally, the futures market is not holding adequate stock, which is impacting prices.
Cotton production drop
The Cotton Association of India (CAI) has reported a drop in cotton production this year. This makes the fall in cottonseed cake prices even more surprising. While there might be other factors at play, this situation is worrying for India’s push towards becoming self-reliant in oilseed production. Experts argue that futures trading in oilseeds should be questioned because of this price decline. Ten years ago, when maize cost Rs 10-12 per kg, cottonseed cake was priced at Rs 23-24 per kg. Today, when cottonseed cake is priced at Rs 26 per kg, maize is now Rs 27-28 per kg. This shift may explain why cotton production is decreasing in the country.
Edible Oil and Oilseed Prices Update
| Product | Price Range (per Quintal/Tin) |
|---|---|
| Mustard oilseeds | Rs 6,450-6,500 |
| Peanuts | Rs 5,900-6,225 |
| Peanuts mill delivery (Gujarat) | Rs 14,250 |
| Peanuts refined oil | Rs 2,150-2,450 (per tin) |
| Mustard oil Dadri | Rs 13,450 |
| Mustard Pakki Ghani | Rs 2,250-2,350 (per tin) |
| Mustard Kachi Ghani | Rs 2,250-2,375 (per tin) |
| Sesame oil mill delivery | Rs 18,900-21,000 |
| Soybean oil mill delivery (Delhi) | Rs 13,000 |
| Soybean mill delivery (Indore) | Rs 12,750 |
| Soybean oil degum, Kandla | Rs 9,025 |
| CPO ex-Kandla | Rs 12,800 |
| Binola mill delivery (Haryana) | Rs 11,600 |
| Palmolein RBD, Delhi | Rs 14,050 |
| Palmoline ex-Kandla | Rs 13,000 (without GST) |
| Soybean grain | Rs 4,265-4,315 |
| Soybean loose | Rs 3,965-4,065 |
| Maize cake (Sariska) | Rs 4,100 |
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Source : Times Bull
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