Peanut Market News October 23, 2018
Following lower production estimate of groundnut, this festive season may cost consumers more to buy groundnut oil. The prices of the edible oil have already started increasing during this week and they may rise further in coming days.
According to the millers, during this week, groundnut oil prices have gone up by Rs 25 to Rs 1,625 per tin of 15 kg in retail market and this could be reach over Rs 1,700-1,750 per tin by Diwali. As compared to previous year’s Diwali, this time the oil prices could be higher by 10-12%.
“Arrival of new groundnut has begun but as most of the stock is consumed by the peanut producers, edible oil mills have scarcity of crushing this year. Moreover, groundnut prices are also higher due to lower production estimate at the beginning of the season,” said Suresh Kaneria, managing director of Kaneria Oil Industries who is selling edible oils under the brand name of Rani.
According to the Kaneria, groundnut oil will remain firm during entire this season. However it will not touch to new high as now consumers are not sticking to one edible oil alone.
Kaneria said, “We may see rise in groundnut oil prices during this season. Prices of imported edible oils are under control and consumers will shift to other oils too.”
Groundnut production in Gujarat would be about 1.3-1.5 million tonnes in 2018-19 as against 3.2 million tonnes in 2017-18. Oil millers estimate that groundnut oil production also will be reduced by 55-57% this year due to less availability of groundnut for crushing.
“In 2017-18, groundnut oil production was about 7 lakh tonnes but looking to the production estimates this year the oil production would be about 3 lakh tonnes. However, prices have already bottomed out due to huge production of groundnut and groundnut oil. The recent rise in prices is due to growing festival demand and less availability of groundnut for crushing. We have huge stock available of imported edible oil and this will control the growing prices,” said Sameer Shah, president of Saurashtra Oil Mills Association (SOMA).