Sunday, November 27, 2022
HomeBusinessEdible Oil: The price of edible oil may touch a new high...

Edible Oil: The price of edible oil may touch a new high this year, know why it is feared

Edible Oil Prices: The Saurashtra Oil Millers Association (SOMA) said on Monday that the price of edible oil may touch new highs this calendar year. The price of 16 liter tin of groundnut has gone up to Rs 2,750 and that of cotton seed oil to Rs 2,700. Soma claimed that the current price hike is because farmers do not have stock of groundnut.

The state government has barely 1.50 lakh tonnes of groundnut stock
Even as the state government has barely 1.50 lakh tonnes of groundnut stock, even if the entire stock is taken off the market, it cannot increase the amount of groundnut oil production which according to traders can stabilize the market.

Edible oil prices will continue to rise throughout the year
It is going to be a tough year for the consumers as the prices of edible oils will continue to rise throughout the year. Soma president Kishorbhai Viradiya said, “There is no hope of a fall in the price of groundnut when new stocks arrive in November, as sowing this year has been comparatively low.”

sowing is decreasing
Kishorbhai’s claim of low sowing is reflected in the weekly sowing data of the state agriculture department. Till July 4, groundnut was sown in 10 lakh hectares and cotton was sown in 1.5 million hectares. The SOMA president further said that till June 30, under normal circumstances, groundnut was sown in 14 lakh hectares, while this time it is in 10 lakh hectares. He estimates that this time groundnut will be sown in 1.5 million hectares as against 20 lakh hectares last year.

Farmers are turning to another crop
On the other hand, farmers are shifting from groundnut to cotton due to good cotton prices in the last season. If the area under cotton cultivation increases, it will have an impact on groundnut and oil production. There is every possibility that the demand for raw groundnut from overseas markets will remain high and this may lead to a rise in domestic oil prices even after November, leaving no chance of a fall in prices this year.

- Advertisement -

- Advertisment -

- Advertisment -spot_imgspot_imgspot_img


Two Wheeler


Digit News