NK Proteins expects edible oil prices to ease after new crop arrivals from October
NK Proteins expects edible oil prices to remain firm over the next few months, supported by festive demand, limited domestic supplies and higher import costs, before easing with new crop arrivals in October. The company plans to expand its focus on mustard and groundnut oils while working with farmers to boost domestic production.
Edible oil prices are likely to remain at current levels over the next few months before easing with the arrival of the new crop in October, Priyam Patel, Managing Director of NK Proteins, said.
He added that festive demand, limited domestic crop availability and higher import costs are expected to keep prices supported in the near term, while fresh supplies should improve the demand-supply balance later in the year.
Patel said domestic crop availability remains low heading into August, although strong imports this month should help stabilise prices.
Patel said the edible oil industry continues to face volatility from global developments, including currency movements and geopolitical tensions. “I think that has become a part of the edible oil industry, and we will have to live with it,” he said.
Patel said NK Proteins plans to focus on expanding its presence in indigenous edible oils rather than imported oils. He said the company sees stronger opportunities in mustard and groundnut oils and is working with farmers to improve mustard acreage and yields. Patel also expects Indian consumers to increasingly use different edible oils for different cooking needs.
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Source : CNBC TV18
