Edible Oil Prices Dip Lower Than MSP; Check Latest Rates
Much to the relief of the common man, the prices of edible oils have dipped lately. Reportedly, the mustard oil and oilseed prices declined in Delhi’s oil and oilseed market on Monday in comparison to its previous trading session. Meanwhile, the prices of soybean oil, sesame and Crude Palm Oil (CPO), palmolein and sunflower oil remained steady. Amidst high buying, the prices of groundnut oil and oilseeds remained unchanged.
As per reports, on Monday, about 13 lakh mustard arrived in comparison to 9 lakh bags which arrived on Saturday, thus indicating a high demand. Due to high demand, the farmers are not able to withhold their crops and sell them away as they need funds for further needs.
Unfortunately, they are forced to sell at prices lower than the Minimum Support Price (MSP). Even if the government buys MSP from the farmers, it has to ensure that the farmers have produced mustard and this will benefit limited farmers. This situation is the same for soybean, palm oil and groundnut oil as well.
Currently, mustard seeds are being sold at 10-12 per cent lower than the MSP. It needs the government’s immediate attention because if this continues, then the cultivation of soybean, cottonseed, groundnut and mustard oil will take a serious hit. About 75 per cent of the cottonseed stock has already been consumed in the market at a price 10-12 per cent below MSP. Groundnut oil too is sold at 6-7 per cent below MSP. Sunflower oil is being sold at 30-35 per cent lower than the MSP. Even though the import of soybean oil is cheap, it is being sold 7-8 per cent cheaper than MSP.
This dip in the prices will lead to a shortage of edible oils shortly. If palm and palmolein oil will not be imported because of their high cost, then indigenous oil will fall short of meeting the increasing demands. Meanwhile, CPO prices at the ports increased from $ 995 (Rs 82,340) to $ 1,000 (Rs 82,754) a tonne.
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