Higher oilseed production not to soften oil prices
Domestic edible oil prices are unlikely to soften even as the country's oilseeds production is expected to go up.
By PTI |
NEW DELHI: Domestic edible oil prices are unlikely to soften even as the country's oilseeds production is expected to go up, an industry official said.
"As far as domestic prices of edible oils are concerned, they are dependent on the trend in the international market," Solvent Extractors Association of India (SEA) Executive Director B V Mehta said.
Mehta said international prices are very firm and therefore, domestic price is likely to remain strong.
He said the industry is expecting a crop size of 15 million tons for all oilseeds this Kharif compared to 13 million tons last year.
Oilseeds production is expected to rise by 15.2 per cent at 15.15 million tons in 2007-08 compared to 13.15 million tons in the previous year, the Central Organisation of Oil Industry and Trade (COOIT) said while releasing the first advance estimate of Kharif crops.
The estimated increase in the production is because of rise in area under coverage of major oilseeds like soyabean and groundnut, COOIT Chairman Davish Jain said.
Mehta said the higher crop size would increase the availability of oil and meal but will not have much impact on imports.
"It (the higher oilseed production) will not have much impact on the quantity of import," the SEA Executive Director said, adding annual output of additional 1.5-2 million tons of oilseeds was required to freeze imports at current level.
Edible oil demand is estimated to increase to 15.6 million tons in 2010 and to 21.3 million tons by 2015 from the current level of 12.0 million tons, he said.
"As far as domestic prices of edible oils are concerned, they are dependent on the trend in the international market," Solvent Extractors Association of India (SEA) Executive Director B V Mehta said.
Mehta said international prices are very firm and therefore, domestic price is likely to remain strong.
He said the industry is expecting a crop size of 15 million tons for all oilseeds this Kharif compared to 13 million tons last year.
Oilseeds production is expected to rise by 15.2 per cent at 15.15 million tons in 2007-08 compared to 13.15 million tons in the previous year, the Central Organisation of Oil Industry and Trade (COOIT) said while releasing the first advance estimate of Kharif crops.
The estimated increase in the production is because of rise in area under coverage of major oilseeds like soyabean and groundnut, COOIT Chairman Davish Jain said.
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The total acreage under oilseeds stood at 171.87 lakh hectare till September 7 compared to 159.47 lakh hectare in the year ago period. Mehta said the higher crop size would increase the availability of oil and meal but will not have much impact on imports.
"It (the higher oilseed production) will not have much impact on the quantity of import," the SEA Executive Director said, adding annual output of additional 1.5-2 million tons of oilseeds was required to freeze imports at current level.
Edible oil demand is estimated to increase to 15.6 million tons in 2010 and to 21.3 million tons by 2015 from the current level of 12.0 million tons, he said.
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