Market analysts suggest that despite the global market relief, consumers are still suffering from the high rates.
The prices of mustard, groundnut, soybean oil-oilseeds, cottonseed, crude palm oil, and palmolein oil fell in India following a slump in the global markets. The cost of mustard seeds decreased by Rs 175 close to Rs 7,300-7,350 per quintal as compared to Friday’s closing price.
The Dadri oil saw a decline of Rs 550 to close at Rs 14,850 per quintal over the weekend. In comparison, Pakki Ghani and Kachi Ghani oil declined by Rs 90 to Rs 2,250 from 2,380 and Rs 2,310 from 2,435 per tin (15 kg) respectively.
Market analysts suggest that despite the global market relief, consumers are still suffering from the high rates. As per a document viewed by S&P Global Commodity Insight, the government’s quota system for duty-free soybean oil and sunflower oil for importers with a ceiling of a maximum of 0.2 million mt for each buyer is a way to check high domestic prices. Market experts suggest this quota system has offered partial relief to Indian consumers. The quota system left other oilseed products at standstill and increased the cost of soybean and sunflower in the market.
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As reported by the news agency, PTI, the difference between the price of soybean and palmolein, which earlier used to be Rs 10-12, has increased by Rs 40 per kg this year. This has made the latter cheaper than other oilseed products in the Indian market.
Similar is the case with cottonseed where farmers are stopping the production of the crop because of its market value.
