Rejection of export order adds to the woes of the market.
Lower demand coupled with rejection few export consignments of raw material seem to have taken a toll on the groundnut oil prices in the local markets. Groundnut oil prices have crashed by around Rs. 50 per 10 kg within a week. Traders and millers fear further dip in the prices if the demand fails to improve.
As per the market players, export orders from Philippines, Manila, Indonesia and Europe have been rejected recently due to poor quality.
Fresh arrivals along with dumping of rejected stock in local markets are likely to put additional pressure on groundnut oil prices.
The price quoted for groundnut oil last Wednesday was Rs.590-595 per 10 kg price which nosedived by Rs. 50 to touch Rs.555 to Rs. 560 per 10 kg today. In the retail markets, price of 15 kg tin has dipped to Rs. 1,020 to Rs. 1,025 from Rs. 1,060-1,065 a week ago.
Traders further expect the price to fall to Rs. 525 per 10 kg if demand does not pick up. “Increased arrivals of groundnut are impacting the groundnut oil prices on one hand and there is no significant demand in the market. Overall market is sluggish both nationally and globally,” said groundnut traders.
The daily arrivals of fresh crop in Gujarat markets are pegged at 1.25 lakh bags. In the export market groundnut is quoted at Rs.34,750 per tonne, which is lower by Rs.6,000 than the price quoted at the onset of the current month. Groundnut prices are hovering around Rs. 440 to Rs. 445 per 20 kg in Rajkot mandi. Demand from millers is also down. All this is going to bring down the prices further, traders said.