India Edible Oil Prices Rise on Firm Global Markets and Thin Arrivals
Mustard, soybean, groundnut, palm and cottonseed oil prices rose across India's wholesale markets last week, driven by firm international benchmarks, a weaker rupee and thin farmer arrivals, according to Livemint. Soybean processors in Latur have announced higher procurement prices to attract more farmer selling in mid-to-late August.
Edible oil prices firm across Indian markets
Prices for edible oils and oilseeds rose across India's wholesale markets last week, driven by strength in international benchmarks, a weaker rupee and thinner arrivals from farmers, according to Livemint. Mustard, soybean, groundnut, crude palm oil (CPO), palmolein and cottonseed oil all closed higher for the week.
A weaker rupee made imported edible oils more expensive for Indian buyers, Livemint reported. Market participants said several importers had previously been selling below cost by 3-4%, but that gap has narrowed to about 1-1.5%, allowing prices of imported oils to recover as well.
Sunflower oil premium shifts demand to other oils
Sunflower oil remains significantly costlier than other edible oils in the Indian market, trading about 20 rupees per kg above soybean refined and palmolein oil, around 15 rupees per kg above groundnut oil, and 8-10 rupees per kg above mustard oil. That price gap has pushed demand toward cheaper alternatives, with industrial consumption of soybean refined and palmolein oil increasing, Livemint said.
Cottonseed oil availability is described as very limited, adding further support to prices, while groundnut oil has absorbed a larger share of demand given the elevated cost of sunflower oil.
Farmers hold back supply as processors raise offers
Farmers, having already secured favorable prices, are reportedly reluctant to sell at lower rates and are bringing limited quantities to market, restraining supply of mustard, soybean and groundnut oilseed. Several soybean processing plants in Latur, Maharashtra, have announced they will raise their procurement price to 7,750 rupees per quintal between August 15 and August 30 to attract farmer selling, according to Livemint.
Mustard arrivals in mandis also remain thin. The tighter supply pushed up both mustard seed and mustard oil prices during the week, though buying interest lagged expectations because of the higher price levels, Livemint reported. Groundnut prices were supported by strong industrial demand.
Weekly price moves
- Mustard seed: up 200 rupees to 7,725-7,750 rupees per quintal
- Mustard oil: up 375 rupees to 15,900 rupees per quintal
- Mustard pakki ghani oil: up 50-55 rupees to 2,615-2,715 rupees per 15 kg tin
- Mustard kachi ghani oil: up 50-55 rupees to 2,615-2,765 rupees per 15 kg tin
- Soybean seed: up 175 rupees to 7,175-7,225 rupees per quintal; soybean loose at 7,025-7,100 rupees per quintal
- Soybean oil (Delhi): up 150 rupees to 15,550 rupees per quintal
- Soybean oil (Indore): up 50 rupees to 15,300 rupees per quintal
- Soybean degum oil: up 75 rupees to 12,050 rupees per quintal
- Groundnut oilseed: up 200 rupees to 6,950-7,525 rupees per quintal
- Groundnut oil (Gujarat): up 375 rupees to 16,000 rupees per quintal
- Groundnut solvent refined oil: up 60 rupees to 2,560-2,860 rupees per 15 kg tin
- Crude palm oil (CPO): up 225 rupees to 13,625 rupees per quintal
- Palmolein oil (Delhi): up 125 rupees to 15,525 rupees per quintal
- Palmolein oil (ex-Kandla): up 150 rupees to 14,325 rupees per quintal
- Cottonseed oil: up 150 rupees to 16,000 rupees per quintal
Full market analysis
