Despite a very nominal demand, groundnut oil prices have created a new high just a few days after the local markets opened post Janmashthami festive season. The groundnut oil price has increased by Rs 55 per 15 kg tin during the last four days. According to industry sources groundnut oil may touch Rs 1,800 per tin in the coming days.
After the markets reopened on Thursday last week, on the first day groundnut oil price had increased by Rs 20 to Rs 1660-1665 per 15 kg tin. On Monday the prices hovered around Rs 1695-1700 a tin in Gujarat. Loose groundnut oil was traded at Rs 1020-1025 per 10 kg. Mill delivery groundnut price has stood at Rs 850-860 per 20 kg and price of G-20 quality groundnut has been Rs 820-830.
At present there are hardly 10-12 groundnut oil mills working out of the 500 located in the Saurshtra area which produces about 50-70 tonnes of groundnut oil per day.
Rajkot based Suresh Kaneria of Kaneria oil Industry said, There is a huge scarcity of groundnut for crushing. In this condition many mills has closed their units since the past few months. Moreover at present the arrival of groundnut has declined from 12,000-15,000 bags a day to 5000-7000 bags per day. Kaneria added that the industry would now have to wait for the new season’s crop which will come after one or two months. Till then groundnut oil prices may continue to increase and it may touch Rs 1800 level.
It is a time of scarcity for us as most of the stocks of the summer crop of groundnut were consumed through peanuts and its products. That is why the price of groundnut is increasing and will continue to do so, said Samir Shah, managing director, Rajmoti Oil Industry from Rajkot.
He further added, “The demand and production of groundnut have not kept pace with each other. As a result though there is increase of demand for peanuts, the production has not increased in the same pace. As a result oil mills are now facing shortage of raw materials and in such a situation a price rise is expected.”
Even the upcoming festival season looms large for traders as the demand has been steadily dipping. A Rajkot-based groundnut retailer said, “Even with the oncoming festival season, the demand is very poor due to high prices. Moreover with the price hike many users have now switched to using cotton oil as groundnut oil is not viable for them.”
