Sunflower oil prices unlikely to rise in next three months

Despite increase in demand for sunflower oil and decline in groundnut production, there was no likelihood of an increase in price, due to a decline in palm oil futures in the ensuing three months.

Hence sunflower growers should release the produce as and when it was harvested and sell it through the regulated market at Vellakoil to get maximum net prices and avoid selling at farm gate, according to Domestic and Export Market Intelligence Cell (DEMIC) of the Tamil Nadu Agricultural University.

DEMIC carried out a study on sunflower price data of the market in Vellakoil and concluded that the price would remain stable for the next two months. The modal prices would revolve around Rs 22 to Rs 23 per kg in August-September, DEMIC claimed.

Increase in sunflower prices seed and reduction in groundnut area raised queries among sunflower growers in Tamil Nadu like whether 'Chitrai crop,' which has started arriving in the market would fetch higher prices or vice-versa and whether acreage should be increased in the coming season.

To find the answer, DEMIC analysed the price data of the last seven years at Vellakoil, the major market centre of sunflower. Stating that the crop is raised in two seasons 'Karthikai Pattam' (Oct-Nov) and 'Chitrai' (April-May), DEMIC said peak arrivals were in March, May, July and August. As much as 50,000 bags per day (50 kg per bag) of arrivals could be seen in some days in these months.

The traders outsourced sunflower from Karnataka only when there were fewer arrivals in these markets to meet the demand of oil mills in Tamil Nadu. They also preferred Tamil Nadu crop (40-42 kg oil per quintal) for its high oil recovery than Karnataka (35 to 36 kg). Normally, Chitrai crop would arrive in markets from the third week of July onwards, DEMIC said. The arrivals would be low this season (July-Sept), due to poor rainfall last year, it said.

In Tamil Nadu, for the past five years, sunflower was a crop of choice for farmers in Tiruchirapalli, Erode, Karur, Dindigul, Villupuram and Cuddalore region, due to its wider adaptability, high yield potential, shorter duration and profitability.

Total sunflower area and production in the State in 2005-06 was 0.17 lakh hectares and 0.21 lakh tonnes respectively, with productivity of 1240 kg per hectare, higher than the national average of 615 kgs.

About 68 per cent of the crop was raised under irrigated condition and major market centres of the State were Vellakoil Moolanur and Kodumudi, where entire Tamil Nadu production was sold, DEMIC said.

Sunflower is cultivated in about two million hectares in India (10 per cent of World sunflower area) and production is around one million tonnes (four per cent of World). The major producers are Karnataka (54.86 per cent), Andhra Pradesh (20.83) and Maharashtra (14.58).

Seventy per cent of the crop is produced in Rabi (Nov- March) season, and the balance in Kharif (June-Sept),with major trading centres for sunflower oil at Mumbai, Chennai and Hyderabad.