Edible Oil Price Update: Due to the rise in the global market, there has been an improvement in the prices of edible oil in the domestic market. In the oil-oilseed markets across the country, the prices of mustard, soybean, groundnut aggregate have all seen a rise. According to market experts, the prices of edible oils in Malaysia have strengthened by about $100 last week.
Government cuts import duty
Meanwhile, the government has cut the import duty value. Under this reduction, import duty of palmolein has been drastically reduced by Rs 307 per quintal, while in soybean degum by Rs 69 per quintal and import duty value of crude palm oil (CPO) has been reduced by Rs 47 per quintal.
How was the price of soybean oil earlier?
After this cut, the price of soybean oil, which was earlier about $ 50 more than the CPO, has now increased to $ 310. After the year 2010, within a week, the prices of soybean grains have never been seen increasing so rapidly.
imports will increase
In Malaysia, CPO and Palmolein are almost at par value as export duty is levied on CPO oil whereas export duty on Palmolein is negligible. Sources said that imports of CPO and palmolein will increase as the price of soybean degum by $ 300 per tonne is costlier than CPO and palmolein.
How was the price of soybean oil?
Sources said that the prices of soybean oil and oilseeds are already strong and the CPO price, which was about $2,050 a tonne about two months ago, has come down to about $ 1,030 a tonne. It has now increased again to $ 1,150 per tonne. A firming up of the Malaysia Exchange helped CPO and palmolein oil prices also improve in the reporting week.
oil is not getting cheaper
Sources said that after the exemption in import duty, oil prices should be cheaper, but neither the consumer, nor the farmers nor the oil industry is getting the benefit of the government’s concessions. Due to this, there is only loss of revenue to the government.
Mustard oil is cheaper by Rs 30
Groundnut oil – oilseeds as well as cottonseed oil prices improved during the week due to increased demand from namkeen companies. Sources said that the arrival of mustard in the mandis is continuously decreasing and the demand for this oil is increasing during the rainy season, due to which there is an improvement in mustard oil and oilseeds. Mustard oil is cheaper by about Rs 30 a kg as compared to last year.