Prices of groundnut oil shot up by Rs 12 per 10 kg in a single day yesterday in the Mumbai market, on account of the Gujarat government banning exports of groundnut oil from the state to other states.
Gujarat has also fixed the maximum price limit of Rs 440.00 per 10 kg of ground oil in the state. Significantly, paucity of rains in the state has turned the market sentiment to bearish.
Groundnut oil soared to Rs 487 per 10 kg from Rs 468 quoted on June 23 and Rs 434.00 quoted on June 1.
The arrivals of edible oils from the other neighbouring states like Karnataka, Andhra Pradesh, the other groundnut producing states, and some centers of Maharashtra have almost remained negligible due to inadequate stock position there.
According to an estimate, overall arrivals of groundnut oil have remained around 175/200 tonne as against its demand of 400 tonne a day.
According to the informed sources, the arrivals of groundnut oil from Gujarat have come to a grinding halt on account of various restrictions put on the export of oil to any other state.
Arrivals from Gujarat play a major role in keeping prices in check.
However, the arrivals of imported palmolein have remained brisk.
All the stock coming in is fully consumed on account of heavy demand for edible oil and the shortage of groundnut oil. Prices in Malaysia have gone up to $627 a tonne f.o.b. from $610 within two days.
According to Navinchandra Shah, president of the Bombay Oilseeds and Oils Exchange Ltd, a huge quantity of about one lakh tonne of palmolein is likely to arrive by July, but looking at the rising demand, this will not be able to have any effect on the bullish price trend in the local market.
Market sources say that the shortage of groundnut oil has turned the entire market sentiment and has pushed up the prices of other edible oils.
Sesame oil prices have shot up to Rs 435 from Rs 420 per 10 kg quoted on June 15.
Kardi oil prices shot up to Rs 600 from Rs 580 and mowra oil prices soared to Rs 370 from Rs 335.
