Oil prices fall by Rs 3-6 per kg; expected to remain stable till March

KOLKATA: After a drop in vegetable prices, it’s now the turn of edible oils to give some relief to the Indian consumer. Prices of all categories of edible oils have fallen in the global markets forcing companies to reduce prices by Rs 3-6 per kg since. Prices are expected to remain at this level till March as there will be no pressure on supply.

Talking to ET, Angshu Mallick, chief operating officer, Adani Wilmar said: “We have gradually reduced prices of edible oil by Rs 3-4 per kg since Diwali as international prices have fallen. Going ahead, we plan to reduce prices by another Rs 2 per kg. The price reduction has come in the winter when the demand for oil goes up,” Mallick said.

Adani Wilmar markets oil under the brand name Fortune. Prices of soybean oil have dropped to $910 per tonne from $1,020 per tonne from the first week November. Similarly, palm oil has dropped by $60 per tonne to $830. Sunflower oil, which is liked by the health conscious, is also on a downward mode and has touched $890 per tonne from $1,000 per tonne since Diwali.

Sandeep Bajoria, CEO of the oil consultancy firm Sunvin Group said that international edible oil prices have stabilised. “The market is not likely to fall further. Prices of edible oil at the retail end are expected to remain on the lower side in the next two to three months.” US soybean production has been on the higher side this year.

According to January 10 USDA report, total US soybean production for 2013 is estimated at near 3.29 billion bushels, which compares to 3.03 billion bushels in 2012, and 3.09 billion bushels in 2011. Similarly, sunflower production in Ukraine has been on the higher side. Siraj A Chaudhry, chairman of Cargill India, said they have passed on the benefits of lower global prices to consumers.

“Whenever there is a drop in prices we try to pass it on to the consumers,” he said. Like Cargill, Ruchi Soya has reduced prices of edible oil. “Prices have gone down byRs 5-6 per kg and this trend is likely to continue till February,” said a spokesperson.