In edible oils, increased supply of goods in the market due to increase in imports from sea due to festivals

- Bhoo Bazar : Dilip Shah

- Yearly imports increased to 165 lakh tonnes, likely to break all previous records

With the festive season in full bloom in the country, seasonal demand has also been seen in various agricultural markets recently. Although every year the prices of edible oils in the country's edible oil markets go up, but this year the situation has been reversed, market insiders said. The edible oil markets in the country recently saw a sharp fall in the prices of various imported edible oils. Crude oil prices in the global market fell after hitting a 10-month high, followed by a rapid universal retreat in palm oil and soybean oil prices in the agricultural markets of Malaysia and the United States. As the world market has declined, the import cost of various edible oils imported domestically has also come down and its impact has been reflected negatively on the market prices locally. According to sources in the Mumbai market, the prices of imported palm oil continued to fall and fell close to the level of Rs.800 per 10 kg. Although the import cost-import gap of palm oil has in fact been higher than the prevailing market price, the market has been overburdened with upside trades going on! Bearers were also waiting for stability in the falling market in palm oil and new trades in palm oil slowed down in the Mumbai market in a wait and watch mood. Crude Palm Oil CPO Kandla prices fell below Rs.800 to trade between Rs.754 and 755.

Apart from imported palm oil, the prices of soya oil and sunflower oil also saw a sharp decline recently, and its effect was also seen on the prices of domestic edible oils. In Singoil, the bullish car reversed again recently after prices rallied behind Saurashtra. As the price of washed cotton in Saurashtra plunged below Rs.800, in various states of the country, the cotton oil market witnessed a rapid price drop. Saurashtra single oil fell to Rs.1700 to Rs.1800 in loose 10 kg. The price in the Mumbai market was Rs.1800. The difference between the price of single oil and the price of imported palm oil recently widened significantly, setting a new record in such price difference. As such price difference increased to more than Rs.1000 per 10 kg, the market experts were showing surprise. The country has seen a significant increase in the import of various edible oils in recent months. Due to this, the burden of goods in the market has also increased. According to an estimate, in the month of August, the import of various edible oils in the country has crossed the level of 18 lakh tonnes and has been recorded above about eighteen and a half lakh tonnes. Against this, in August last year, such imports were around 13 lakh 74 to 75 thousand tons. Thus, on an annual basis, there has been a record growth of approximately 34 to 35 percent in the import of edible oils in the country in the month of August. In the month of August before July, this year, such imports have increased to more than 36 lakh tonnes and while the demand has been slow compared to this, the country's edible oil traders and importers and refiners have increased the supply of goods. And its effect has been seen on the market price. Meanwhile, according to the US Department of Agriculture, the import of edible oils in India is estimated to increase to a record 165 lakh tonnes annually in the 2022-23 season. Out of this 165 lakh ton import, palm oil import alone has been estimated to be around 100 lakh ton by USDA. Apart from this, there has been a significant increase in the import of sunflower oil in the country. Russia-Ukraine dumping of sunflower oil has increased. In India, such oil is available at a special discount. According to the recent news in the world market, the prices of palm fatty acid and sunflower oil have come down to Rs.800 per 10 kg. In the oil year 2016-17, the total import of various edible oils in the country increased to 130 to 131 lakh tonnes and at that time such a huge import was considered a record. But now this year the import of edible oils is going to increase and break all previous records, market sources said that consumers are getting overall relief in terms of prices of edible oils during festivals.