Despite the government increasing the import duty on edible oils, the prices of crude palm oil (CPO) and palm olein oil fell instead of rising in the first trading session of the year in the country’s oil-oilseeds market on Wednesday. Cottonseed oil prices dropped due to the decline in the price of imported oils, which affected business sentiment. Soybean oil prices also fell because of the reduction in import duty.
On the other hand, the decision by CCI to increase the price of cottonseed impacted groundnut seed (oilseed), leading to a slight improvement in its price. However, the prices of groundnut oil remained at the previous level due to already weak groundnut prices. Similarly, due to the impact on business sentiment, the prices of mustard oil and soybean oilseeds stayed at the previous level.
Increase in Import Duty on Edible Oils
On the occasion of New Year, Malaysia and Chicago exchanges remained closed. Market sources revealed that the Indian government increased the import duty on edible oils. The import duty on Crude Palm Oil (CPO) has been raised by ₹106 per quintal, while on palm olein, it has been increased by ₹117 per quintal. On the other hand, the import duty on soybean degum has been reduced by ₹28 per quintal.
Experts consider this move a positive step as it aligns with the practice of increasing export duties on edible oils in Malaysia. The intention behind this measure is to protect domestic oilseed production and reduce reliance on imports. Palm and palm olein prices are already higher than Indian oilseeds, whereas cheaper soybean oil struggles against mustard and groundnut oils. Market experts stress the need to boost domestic oilseed production to avoid uncertainties and dependency on imports.
Decline in Palm Oil Prices
Despite the Cotton Corporation of India (CCI) raising the price of cottonseed oilseed by ₹100 per quintal due to low arrivals, cottonseed in Haryana and Punjab continues to sell below the Minimum Support Price (MSP). Palm and palm olein oils, with little demand, saw a price drop since higher prices have deterred buyers. The dip in their prices has similarly impacted soybean oil.
CCI’s hike in cottonseed prices (Edible Oil Prices) offers some relief to cotton farmers. However, the selling price still lags behind the cost of MSP purchases, exerting downward pressure on groundnut, cottonseed oil, and other oils. Weak local demand for groundnut cake further caused groundnut oil prices to remain stagnant.
Market sources reported that prices of mustard oilseeds and soybean oilseeds stayed unchanged, reflecting a lack of strong business sentiment. Although groundnut oilseed prices improved slightly after the CCI’s actions, they remain about 15–16% below the MSP.
Current Oilseed and Oil Prices
- Mustard oilseeds: ₹6,575–6,625 per quintal.
- Peanuts: ₹5,900–6,225 per quintal.
- Peanut oil mill delivery (Gujarat): ₹14,200 per quintal.
- Peanut refined oil: ₹2,150–2,450 per tin.
- Mustard Oil Dadri: ₹13,600 per quintal.
- Mustard Pakki Ghani: ₹2,300–2,400 per tin.
- Mustard Kachi Ghani: ₹2,300–2,425 per tin.
- Sesame Oil Mill Delivery: ₹18,900–21,000 per quintal.
- Soybean Oil Mill Delivery Delhi: ₹13,200 per quintal.
- Soybean Mill Delivery Indore: ₹12,950 per quintal.
- Soybean Oil Degum, Kandla: ₹9,100 per quintal.
- CPO ex-Kandla: ₹12,950 per quintal.
- Binaula Mill Delivery (Haryana): ₹11,950 per quintal.
- Palmolein RBD, Delhi: ₹14,100 per quintal.
- Palmolein ex-Kandla: ₹13,200 (without GST) per quintal.
- Soybean grain: ₹4,300–4,350 per quintal.
- Soybean lose: ₹4,000–4,100 per quintal.
- Maize bran (Sariska): ₹4,100 per quintal.