Expeller mustard oil prices dip

Fresh arrivals, coupled with the after-effect of duty cuts on imported edible oil, have led to a decline in the prices of expeller mustard oil by Rs 100 per 15 kg in last 10 days.

Prices of expeller mustard oil in Ahmedabad have dipped to Rs 500-505 per 10 kg. The same were quoted at Rs 600 to Rs 625 per 10 kg at the end of March.

"In the past couple of days expeller mustard oil prices have seen a drop of Rs 100-110 per 10 kg following fresh arrivals of mustard. The Centre's move to scrap import duty on edible oils too has helped in bringing down the prices," said Suresh Shah, vice-president, Ahmedabad Oil Merchants Association.

According to industry sources, currently 40,000-45,000 bags of 85 kg have been arriving in the local markets. Arrivals are pegged at 2,00,000 to 2,25,000 bags. However, market sources also said the production of mustard in 2008-09 was expected to be 4,20,000 tonnes in Gujarat and 5,50,000 tonnes in India.

In the wake of lower production of mustard expected this year, farmers have got better prices. The prices were quoted at Rs 570-575 per 20 kg at the beginning of the season but declined to Rs 450-465 per 20 kg after duty cut on imported edible oils. Still the prices are comparatively higher than last year. The prices of mustard seed stood at Rs 350-360 per 20 kg.

Other edible oils, including cottonseed, soyabean, sunflower and groundnut, have also witnessed a fall in price in the past fortnight. Of this, palm oil has seen the highest fall. Palm oil prices are currently rulling at Rs 850 per 15 kg, as against Rs 1,050 per 15 kg two weeks ago.

In the last fortnight, cottonseed oil declined from Rs 1,350 per 15 kg to Rs 1,250 per 15 kg, while sunflower dipped to Rs 935 per 15 kg from Rs 1,000 per 15 kg. Groundnut oil too is down to Rs 1,190 per 15 kg from Rs 1,230 per 15 kg.