Chandigarh, 16 January 2025: The dip in Malaysia’s exchange on Wednesday influenced India’s oilseed market, with most domestic oilseed prices closing lower. Key products such as mustard oil, soybean oil, crude palm oil (CPO), palmolein, and cottonseed oil saw declines, while groundnut and soybean oilseed prices remained stable.
Anticipation of next month’s new mustard crop arrival has pushed mustard oil and seed prices down. Production remained unaffected this season, aided by the regulated release of mustard stocks by cooperative bodies like HAFED and NAFED, ensuring stability in the market.
Prices of groundnut and cottonseed cake increased by ₹15-₹20 per quintal across several states. This surge contributed to the decline in groundnut and cottonseed oil prices.
The cost of importing soybean degum oil stands at around ₹102 per kilogram. However, financial constraints have led importers to sell it for about ₹97 per kilogram at ports, leading to a drop in soybean oil prices.
Crude palm oil (CPO) and palmolein oil prices declined due to a weakened Malaysian exchange and diminished buyer interest at elevated price points.
Cotton Production Declines: India’s cotton production is forecasted to fall to 295 lakh bales in 2024-25, significantly lower than 370 lakh bales recorded in 2017-18. Farmers have cited low remuneration and the persistent issue of counterfeit seeds as reasons behind the decrease.
Industry experts highlight inequalities in the oilseed sector, noting that price adjustments for oil cakes directly affect milk prices, whereas price drops in bran fail to reduce them. This disparity challenges efforts to increase oilseed production.
Experts advocate for a modest rise in edible oil prices to motivate farmers to expand oilseed cultivation, thereby reducing dependency on imports and conserving foreign exchange.
Current Oilseed Market Rates (Per Quintal)
Mustard oilseeds: ₹6,550-₹6,600
Groundnut oil (Gujarat delivery): ₹13,850
Refined groundnut oil (per tin): ₹2,105-₹2,405
Mustard oil (Dadri): ₹13,550
Soybean oil (Delhi): ₹13,500
CPO (Ex-Kandla): ₹12,950
Palmolein (Ex-Kandla): ₹13,300
Prices exclude applicable taxes.
The market continues to adjust to both domestic and international trends, reflecting volatility influenced by global exchanges.