Oilseed exports gain, but prices rise on Re dive

KOLKATA: The sharp depreciation of the rupee has been a double-edged sword for the oil and oilseeds industry. While the weak rupee pushed up edible oil prices 2-3% in the past month, it bought cheer to farmers as soya meal and oilseeds exports will earn more.

Trade sources said edible oil prices would not have gone up had the rupee remained stable. Sandeep Bajoria, chief executive officer, Sunvin Group – an oil trading firm said “Price of crude palm oil has fallen by 4.5% and soya oil by 7.74% in last one month since there is an oversupply of both the oils in the world market. But Indian consumers cannot leverage this drop in international prices as rupee has depreciated.”

Rupee has depreciated 11.96% since the beginning of the year. However, edible oil companies held prices as international prices were in bearish mode. Now they have started to pass on price increase on account of rupee depreciation to Indian customers.


“In last one month, prices have shot up by 2 -3%. If the rupee continues to slip further, then, during festive season, prices of edible oil will be higher by 5%,” said Angshu Mallick, chief operating officer of Adani Wilmar.