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Lack of demand coupled with higher availability of groundnut have brought down groundnut oil prices by by 5 per cent in last one week. The decrease in demand for groundnut oil, according to traders, is mainly because of higher price compared to other edible oils.
In last one week groundnut oil price have come down by Rs 105 from Rs 2,100-2,110 to Rs 1,995-2,000 per 15 kg tin. While loose groundnut oil have decreased by Rs 85 to Rs 1,120-1,125 per 10 kg.
"Price of groundnut oil is decreasing since last one week and it may decline further as demand is very weak. Most of people have now shifted to other edible oil like cotton seed oil, palm oil and soya oil as these edible oils are cheaper than groundnut oil," said Ravajibhai Mandanka, president of Gondal Oil Mills Association.
Gap between groundnut oil and cotton seed oil is about Rs 935 per 15 kg tin. Groundnut oil price is Rs 1,195-2,000 per tin while cotton seed oil is priced at Rs 1,060-1,065 per 15 kg tin.
Similarly, 10 kg of palm oil costs about Rs 495-500 which is higher than groundnut oil by Rs 625. Likewise, soya oil is being traded at Rs 670-672 per 10 kg, lower by Rs 453 when compare with groundnut oil.
Suresh Kaneriya, managing director of Kaneriya Oil Mills said, "Higher availability of groundnut for crushing at the time when demand is low is the main reason for downfall in the price. Moreover now summer groundnut arrival will soon start in Saurashtra area which is also pressurising the groundnut oil prices."
Kaneriya said that summer groundnut are mostly exported but this year groundnut export is very weak since last three months due to new rules of registrations and certifications. In present conditions, groundnut oil is likely to fall to Rs 1,100 per 10 kg in next two weeks.
According to data provided by Indian Oilseed and Produce Export Promotion Council (IOPEPC), groundnut export from India during January and February 2013 stood at 70,917 tonnes, down by 65,491 tonnes as compared similar period last year.
