Commodity Prices: Farmers feel that the current price of soybean is very low compared to the last two-three years and hence they are not ready to sell cheaply.
A decline of more than 1.25 percent on the Chicago Exchange last night led to a decline in the country’s oilseeds markets on Saturday in imported oils like soybean degum as well as crude palm oil (CPO) and palmolein oil. On the other hand, due to non-selling at low prices, there was improvement in the prices of soybean oilseeds, mustard oil and groundnut oilseeds amid decline in arrivals.
Amid closure of most of the oil mills of mustard, groundnut, soybean and cottonseed, the prices of mustard oilseeds, soybean Delhi and Indore oil and cottonseed oil remained at the previous level. Sources knowledgeable about the market said that the reason for decline in arrival of mustard yesterday was said to be that the business of mandis was affected at many places due to elections. But later it was found that farmers were not selling at lower prices due to which the arrivals reduced.
The arrival of mustard is decreasing
After the first phase of elections, the arrivals were expected to increase today, but even today no significant increase was seen in the arrivals. Today 6.50 lakh bags of mustard arrived, which was 14-15 lakh bags in April last year. He said that mustard mills are incurring a loss of Rs 5-6 per kg in crushing. Even if the government purchases mustard at the Minimum Support Price (MSP), it will be able to purchase only a maximum of 28-32 lakh tonnes. It remains to be seen where the remaining mustard will be consumed.
This is the difficulty of the domestic oil-oilseeds market
According to government procurement, the price of mustard oil is Rs 125-130 per kg and its wholesale price in the market is around Rs 100 per kg. Market sources said that about 65 percent of the crushing mills of mustard, groundnut, soybean and cottonseed have been closed in this country, which is dependent on imports to meet the shortage of about 55 percent of edible oils. The question remains whether any oil organization is giving information about the actual situation to the government. He said that what is the use of increasing the production of such oilseeds where it becomes difficult to consume domestic oilseeds when the wholesale prices of imported oils are cheaper. Doesn’t this situation underline the need to develop the market for indigenous oilseeds, make import policy accordingly and determine the duty?
Soybean farmers are not ready to sell cheaply
Sources said that due to the fall in the Chicago Exchange last night, the price of soybean degum oil fell. Whereas the farmers are finding the current price of soybean very low compared to the last two-three years and hence they are not ready to sell cheaply, due to which the performance of soybean Delhi and soybean Indore oil is weak due to which the prices of these oils are falling. Prices closed at previous levels.
The prices of oil and oilseeds were as follows:
- Mustard oilseeds – Rs 5,235-5,275 per quintal.
- Groundnut – Rs 6,170-6,445 per quintal.
- Groundnut Oil Mill Delivery (Gujarat) – Rs 14,825 per quintal.
- Groundnut refined oil Rs 2,255-2,520 per tin.
- Mustard oil Dadri- Rs 10,000 per quintal.
- Mustard Pakki Ghani – Rs 1,705-1,805 per tin.
- Mustard Kachchi Ghani – Rs 1,705 -1,820 per tin.
- Sesame Oil Mill Delivery – Rs 18,900-21,000 per quintal.
- Soybean oil mill delivery Delhi – Rs 10,150 per quintal.
- Soybean Mill Delivery Indore – Rs 9,800 per quintal.
- Soybean oil Degum, Kandla – Rs 8,550 per quintal.
- CPO ex-Kandla – Rs 8,925 per quintal.
- Cottonseed Mill Delivery (Haryana) – Rs 9,775 per quintal.
- Palmolein RBD, Delhi – Rs 10,250 per quintal.
- Palmolein Ex- Kandla – Rs 9,275 (without GST) per quintal.
- Soybean grain – Rs 4,800-4,820 per quintal.
- Soybean loose – Rs 4,600-4,640 per quintal.
- Maize cake (Sariska) – Rs 4,075 per quintal.
