 "Short supply, festive demand pullup groundnut oil prices")
Price of groundnut oil has moved up by over five per cent in the wholesale market over the last five days on back of considerable festival demand and shortage of raw material for crushing, while in the retail market, it has gained by nearly three per cent.
"The main reason for the recent price rise is shortage of quality groundnut for crushing and festival demand. New arrival has started coming in but quality is not that good. Low availability of old groundnut and increased crushing on the back of high production has also aided in price rise," said, Samir Shah, president, Saurashtra Oil Mills Association (SOMA).
Over the past five to six days, price of loose groundnut oil has risen by about Rs 50 or 6.75 per cent to Rs 780-790 per 10 kg from Rs 735-740 per 10 kg a week ago in the wholesale market.
Demand for the oil has also improved in one week. It doubled from last week's demand of 30-35 tonnes a day to 100-110 tonnes a day.
Reacting to the current rise in price, Suresh Kaneriya, managing director, Kaneriya Oil Industries, said, "Last season was very good for groundnut oil as price was low throughout the year because of high production. Low price diverted many people from other edible oils to groundnut oil. Currently, prices are down compared to previous year and this has ramped up demand ahead of some of the festivals."
Though new arrival of groundnut generally begins from mid-September, this year it is a bit late. Moreover, old stock is also in small amount. While, demand for peanuts is also good this time, resulting in shortage of groundnut for crushing.
At present, daily arrival of new groundnut is about 22,000-25,000 bags (a bag of 30 kg).
Due to shortage of raw material, many groundnut oil mills have not yet begun crushing. Industry sources say hardly 10-15 mills are currently started crushing.
"The main reason for the recent price rise is shortage of quality groundnut for crushing and festival demand. New arrival has started coming in but quality is not that good. Low availability of old groundnut and increased crushing on the back of high production has also aided in price rise," said, Samir Shah, president, Saurashtra Oil Mills Association (SOMA).
Over the past five to six days, price of loose groundnut oil has risen by about Rs 50 or 6.75 per cent to Rs 780-790 per 10 kg from Rs 735-740 per 10 kg a week ago in the wholesale market.
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In the retail market, price has picked up owing to good festival demand. Price of a new 15-kg groundnut oil tin has increased by Rs 50 and touched Rs 1,365-1,370. It traded at Rs 1,315-1,320 per 15 kg last Wednesday.
Demand for the oil has also improved in one week. It doubled from last week's demand of 30-35 tonnes a day to 100-110 tonnes a day.
Reacting to the current rise in price, Suresh Kaneriya, managing director, Kaneriya Oil Industries, said, "Last season was very good for groundnut oil as price was low throughout the year because of high production. Low price diverted many people from other edible oils to groundnut oil. Currently, prices are down compared to previous year and this has ramped up demand ahead of some of the festivals."
Though new arrival of groundnut generally begins from mid-September, this year it is a bit late. Moreover, old stock is also in small amount. While, demand for peanuts is also good this time, resulting in shortage of groundnut for crushing.
At present, daily arrival of new groundnut is about 22,000-25,000 bags (a bag of 30 kg).
Due to shortage of raw material, many groundnut oil mills have not yet begun crushing. Industry sources say hardly 10-15 mills are currently started crushing.