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Soyoil refining cost goes up, hits manufacturers' profit

Soybean is the basic raw material for soyoil

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BS Reporter Indore
Last Updated : Dec 15 2013 | 9:34 PM IST
Soyoil refining cost has gained more than 50 per cent in the current oil year due to inferior quality soybean supplies, said crushers. Heavy and incessant rains during Kharif 2013 affected the soybean crop quality this season, said trade experts.

Soybean is the basic raw material for soyoil.

"Crushing damaged and spotted soybean produces decolourised and inferior quality solvent soybean oil which requires more refining pushing up the cost by almost  50-60 per cent," said a major soybean crusher from Dewas near Indore.

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Around 55-60 per cent oilseed crushing units of Madhya Pradesh are in and around Dewas near Indore.

The difference between solvent and refined soyoil clearly indicates the increased refining cost, said traders.

At present, solvent soyoil is trading at around Rs 615 per 10 kg (without VAT) and refined soyoil around Rs 660-665 per 10 kg (without VAT) compared with Rs 650 per 10 kg for solvent and Rs 690-695 per 10 kg for refined a month ago, said traders.

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First Published: Dec 15 2013 | 8:56 PM IST

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