Groundnut oil prices expected to remain high

Goundnut oil price in the country is expected to remain high despite a bumper crop as the firm international prices are pushing the domestic millers to increase exports.

Nearly 30,000 tonnes of oil have already been shipped to China, Europe and the US after 40 years. Exports are expected to touch 45,000 tonnes by March 2004, worth roughly Rs 225 crore.

Domestic groundnut oil prices have been at Rs 48,500 per ton this year. Last year the price was Rs 48,000/t following a drought and lower crop.

International groundnut oil prices have hit $1500 per tonne in August-September 2003 before settling at $1170.

It was lucrative compared to the average CIF (cost insurance freight) price of $687 ex-Rotterdam, in 2002.

Besides, international prices were higher than the domestic price of $ 1067 (Rs 48,500). The prices stability in spite of a bumper crop has helped farmers necessary funds to extend the area under groundnut in the rabi season.

According the Solvent Extractors' Association of India (SEA), India exported 29.204 tonnes during November-December 2003, with China buying 5,968t, Europe 13,736t and US another 9,500t.