Groundnut oil prices skyrocketing

By: |
October 28, 2020 8:24 AM

Compared to previous year’s prices during the last week of October, there is nearly 20-30% surge in the groundnut prices.

Sources close to the development said that inquiries from Chinese traders were initiated in June which translated into confirmed orders in August this year.

Prices of groundnut oil skyrocketed and touched Rs 2,500 per tin (15 kg) over the past two months, following heavy-buying from Chinese traders as there has been an increase of Rs 350 per tin during the period.

Compared to previous year’s prices during the last week of October, there is nearly 20-30% surge in the groundnut prices. Sources close to the development said that inquiries from Chinese traders were initiated in June which translated into confirmed orders in August this year.

Now, it’s time to ship the groundnut oil to the neighbouring country and hence there is a sudden spurt in the prices.
“Nearly 60 thousand tonne groundnut oil has been shipped to China from Gujarat, especially from Saurashtra region during the current season. We are expecting another 30-40 thousand tonne of exports from the state in the next couple of months,” said Kishor Viradia, president of Saurashtra Oil Mills Association (Soma).

According to the Soma president, apart from exports to China, increased groundnut oil prices is due to lower production of the legume crop than the government’s estimate of 55 lakh tonne. Realistically, groundnut output in the state remains around 35-38 lakh tonne during the current kharif season despite a 25% increase in the sowing area from 16-21 lakh hectare. Last year, groundnut output in the state remained nearly 32 lakh tonne.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1India’s crude steel output rises 0.9 per cent to 9 MT in October: World Steel Association
2Do not increase SAP, UP sugar mills urge CM Yogi Adityanath
3China set to eclipse US as world’s biggest oil refiner