Edible oil prices up 10% in January

Low acreage, high global prices lead the surge.

A decline in acreage and a spurt in global prices are pushing edible oil rates up in the local market.

In the last one month, prices of major edible oils have firmed up by 10 per cent in Mumbai on guidance from the global market, where prices perked up by 11 per cent during the period.

Groundnut oil has moved up to Rs 650 per 10 kg against Rs 590 a month ago, while refined soya oil has risen to Rs 575 from Rs 538.

Refined palmolein has jumped to Rs 542 from Rs 507 while refined sunflower oil surged by Rs 105 to Rs 775. Expeller mustard oil prices rose from Rs 544 to Rs 578 and refined cottonseed oil shot up to Rs 560 from Rs 525 in the period under consideration. 
 

Oilseed acreage in 2007-08
Oilseeds	2007#	2007*	2008*	% chg
Groundnut	9.54	7.47	8.03	0.56
Rapeseed/mustardseed	65.99	66.67	59.05	-7.62
Semamum	2.45	1.18	1.25	0.07
Linseed	4.26	5.15	4.83	-0.32
Sunflowerseed	12.61	11.63	10.07	-1.56
Safflowerseed	3.50	3.41	3.16	0.25
Total	98.35	95.51	86.39	-9.12
# Final,  * up to February    1 Figures in lakh hectares

Davish Jain, chairman, Central Organisation for Oil Industry & Trade (COOIT) said a 10 per cent lower production estimate in the wake of a similar fall in acreage led to the price rise.

He added that unfavourable weather during the ongoing rabi season might further lead to a fall in the output.

Jain, however, said that the current prices were at realistic level and had not moved up in tandem with the global prices, which have gone up by 100 per cent in the last few months. He emphasised on increasing oilseed yield.

In Indonesia, crude palm oil (CPO) jumped from $890 a tonne freight on board (FOB) to $945 a tonne in December and again to $1,020 a tonne in January. Thus, the total rise on CPO in a short span of two months recorded a 15 per cent.

According to data compiled by COOIT, total rabi oilseed area has declined by 11 per cent as on February 1, 2008 to 8.6 million hectares compared with 9.5 million hectares around same time last year.

"There are reports of crop damage due to frost but its real impact on production is being assessed, said D N Pathak, director of COOIT.

This year so far mustard/rapeseed has been sown in 5.9 million hectares against last year's 6.7 million hectares.

Rajasthan has recorded the maximum fall in acreage, where the area under mustard seed cultivation has declined by almost 5 lakh hectares.