Edible oils rise on buying by millers, global cues

NEW DELHI: Firm conditions prevailed in the wholesale oils and oilseeds market this week with prices of select edible oils ending higher on increased buying by vanaspati millers and retailers amid pick-up in demand and a firming global trend.

In the non-edible section, castor oil moved up on increased offtake by consuming industries.

Traders said apart from increased buying by vanaspati millers and retailers to meet rising demand, a hike in the import duty on both crude and refined edible oils influenced trading sentiments.

Besides, a firming global trend too gave push to rising edible oil prices, they said.

Meanwhile, the government raised import duty on both crude and refined edible oils by 5 per cent to protect the interest of domestic farmers and oil processors amid fall in global prices, a move that may lead to rise in retail prices.

The customs duty on crude oil has been increased to 7.5 per cent from 2.5 per cent earlier, while the duty on refined edible oil has been raised to 15 per cent from 10 per cent.

Globally, palm oil rose to 2,236 ringgit ($639) a metric tonne on the Malaysia Derivatives Exchange, the highest level since November 27.

In the national capital, mustard expeller (Dadri) and groundnut mill delivery (Gujarat) oils rose by Rs 450 and Rs 150 to Rs 7,900 and Rs 8,150 per quintal, respectively on pick-up in demand from retailers.

Mustard pakki and kachi ghani oils edged up by Rs 30 each to Rs 1,250-1,300 and Rs 1,300-1,400 per tin, respectively.

Coconut oil edged also moved up to Rs 2,550-2,600 from previous close of Rs 2,450-2,475 per tin.

Tracking a firming global trend, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils spurted by Rs 350 each to Rs 6,650 and Rs 6,350 and crude palm oil (ex-kandla) went up by Rs 50 to Rs 4,150 per quintal, respectively.