Hope of bumper produce puts edible oil prices under pressure.

New Delhi: Expectations of a bumper domestic soyabean and groundnut production are putting pressure on edible oil prices, with industry insiders predicting the trend to stay.

Prices of refined soya oil and mustard oil have fallen in recent weeks, with traders citing weak demand in the spot market following improved production expectations and higher imports of palm oil from Indonesia.

In the Mumbai market, refined soyabean oil quoted at Rs 650 per 10 kg on Tuesday, a 5% fall since September 1. Palmolein oil, on which the government cut import duty by 5% last month, has become 8% cheaper since September Rs 572 per 10 kg. Price of refined ra1 at peseed (mustard) oil has fallen 3-5% Rs 870 per 10 kg, while that of ground tonut oil dropped 10% to Rs 1,280.

“Oil can remain under pressure as Indian soya and groundnut crops look good. This is good news for consumers and companies. The chance of prices firming up is bleak," said Atul Chaturvedi, president of the Solvent Extractors' Association of India.

Vivek Puri, managing director of Puri Oil Mills that sells products under the P Mark mustard oil brand, said retail price of mustard oil has come down by Rs 8-10 in the past month with current retail price at Rs 110-125 a litre.

Source : economictimes.indiatimes.com