Edible oil prices up despite excess supply

Good rainfall this year has led to a bumper crop of groundnut in the Saurashtra region, but the price of groundnut oil is moving up on good demand from traders and retail users.

The yield of groundnut in the region was over 30 lakh tonnes this year.

Traders, makers of branded oils as well as retail users buy groundnut oil sufficient for the next year's use in December.

As exporters are also sourcing groundnut oil from the market, the prices have moved up on good demand.

The prices of groundnut and groundnut oil are expected to move up further during this week when traders from other states start sourcing the commodity from the markets in the region.

The prices have already increased by Rs 14 to 18 per kg in the Rajkot marketing yard, sources said.

Bhikhalal Patel, a trader, said, "International prices and speculation are also influencing the prices."

Ukabhai Patel, president, Saurashtra Oil Millers' Association, said, "As the government has increased the import duty on edible oil, the prices of oil in the domestic market have gone up."

The 300 oil mills of Saurashtra produce 4,000 to 4,500 tonnes of groundnut oil everyday.

The next round of supply of groundnut to the markets will begin after the summer harvest.