Palm oil prices a close match to cottonseed oil
Edible oil prices in Ahmedabad rose sharply due to global factors and increased import duties. Palm oil now costs ₹2,230 per 15 kg, nearing cottonseed oil prices. Factors include Indonesia’s B40 biodiesel policy, reduced sunflower crop, and strong dollar. Import duties on crude and refined oils were raised in September, driving costs up. Experts suggest boosting domestic oilseed production and advanced processing to reduce dependency and stabilize prices.
Ahmedabad: The edible oil prices rose significantly over the past three months under the influence of international market conditions and a rise in duties, according to industry experts. All varieties of edible oils witnessed an increase exceeding Rs 100 per 15 kg during the previous month, with palm oil prices reaching close to that of cottonseed oil for the first time. IPL 2025 mega auction
B V Mehta, executive director of the Solvent Extractors Association (SEA) of India, said, “Usually, prices of soyabean, palm, and sunflower oils have a vast difference. But now they are almost the same at around $1,200 per tonne in the international market.”For the first time, palm oil prices are almost the same as cottonseed oil prices, he said. “We believe prices of palm oil will remain firm because supply is low. Also, the sunflower crop is lower compared to the previous year, and a strong dollar is resulting in a price rise of imported edible oils.”In Ahmedabad on Friday, the palm oil price was Rs 2,230 per 15 kg, while cottonseed oil stood at Rs 2,250-2,350 per 15 kg.
Priyam Patel, chairman of the West Zone of the SEA, indicated that palm oil stocks would remain constrained until March 2025 due to Indonesia’s B40 biodiesel programme requiring 40% palm oil blending with diesel. Changes in Indonesia’s Domestic Market Obligation policy and limited global sunflower oil availability have contributed to sustained high prices.Patel noted that substantial soybean production in South America could reduce soybean oil prices. “Changes in the US biodiesel policy expected under the new leadership are likely to reduce demand for vegetable oils in biofuel production, further softening price pressures. Additionally, a surplus in the global crude oil market has lowered crude oil prices, making biodiesel less competitive and reducing the demand for edible oils used in biofuel manufacturing,” he added.”India imports over 60% of its edible oil requirements.
Promoting domestic oilseed cultivation and investing in advanced processing technologies are critical to reducing this dependency. A self-reliant edible oil industry is essential for ensuring price stability and safeguarding consumer interests,” said Patel.Pratap Chandan, chairman of the Federation of Gujarat Edible Oil Traders, stated, “The govt increased duty on crude soya, sunflower, and palm oil from 5.5% to 27.5%, while duty on refined oil increased from 13.75% to 35.75% in Sep, and it resulted in a price rise of more than Rs 100 per 15 kg. After that, prices have kept moving upward due to global factors. Palm oil used to be the cheapest edible oil, but now it is on par with cottonseed oil.”
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Source Link : The Times Of India
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