Oilseeds use in bio fuel may spur domestic edible oil price hike

Bhubaneswar, March 23 | Updated: Mar 24 2006, 05:30am hrs
Large-scale diversion of oil seeds for production of bio-diesel world over is likely to have its impact on the edible oil prices in India. Fearing that the prices of the edible oil may go up in the country after May 2006, the National Agricultural Cooperative Marketing Federation of India (Nafed) is preparing for a major market intervention to protect the interest of the consumers.

We have to go for a large scale market intervention as the edible oil prices are likely to go up after April/ May in the country, Nafed additional managing director, Mr Kailash Jani, told FE. According to him the international prices will have its impact on the domestic prices.

Large scale use of oilseeds for production of bio-diesel in European Union nations and USA will create pressure on the prices of oil seeds world over, said Mr Jani. According to him, the EU, which is producing about 16 million tonne of mustard, is now using about 50% of it for production of bio-diesel.

India produces about 6.5 to 7 million tonne of oilseeds per annum as against its requirement of 12 million tonne. Most of the oil seeds in the country come from states like Rajasthan, Haryana, Madhya Pradesh, Gujarat, Uttar Pradesh and Punjab. The country is currently importing about 5 million tonne of oilseed like palm and soya from Indonesia, Malaysia, Brazil and Argentina.

Now Nafed mustard oil in the retail market

Bhubaneswar, March 23: The National Agricultural Cooperative Marketing Federation of India (Nafed) will soon enter the retail consumer market with packaged mustard oil.
We are proposing to enter the consumer market for mustard oil by introducing mustard oil of half a litre to 15 litre packets, the Nafed additional managing director, Mr Kailash Jani, told FE.
The Nafed, which has a capacity of 500 tonne of mustard oil per day, is planning to sell 50% in packaged form and 50% in loose form. West Bengal, Orissa, Assam, Bihar, Uttar Pradesh is the market for the mustard oil.