With increase in the availability of groundnut for crushing and a fall in the export demand for peanuts, groundnut oil prices have witnessed a fall of about Rs 50 per tin (15 kg) over the past one week. According to millers and traders, lower demand would further cause a slide in groundnut oil prices over the coming days.
On Saturday, groundnut oil loose traded in the range of Rs 1,195-1,200 per 10 kg and groundnut oil new 15-kg tin traded around Rs 2,045-2,050. The prices have declined by Rs 50 per tin from Rs 2,095-2,100 per tin on Tuesday. About 50-60 tonnes of groundnut oil is traded every day. "Millers can get good stock of groundnut as demand for peanuts has declined. Moreover, price of groundnut is also falling for past couple of days," said Ravjibhai Mandanaka, president of Gondal Oil Mills Association. With increased availability, several millers have resumed their production. Till May this year, only 5 to 7 groundnut oil mills were working. But now about 20-22 mills are engaged with groundnut oil production in Saurashtra region. However, still more than 275 mills are closed across the state. The daily arrival in the state is over 60,000-65,000 bags, out of which millers consume around 35,000-37,000 bags daily. Currently, groundnut price is running at Rs 890-1070 per 20 kg.