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Select edible oils remain weak on low demand; adequate stocks

Press Trust of India  |  New Delhi 

The wholesale oils and oilseeds market remained subdued for yet another week with select edible prices sliding further owing to easing demand from retailers and vanaspati millers against ample stocks on increased supplies from producing belts.

Castor in the non-edible section, also moved down due to reduced offtake by consuming industries.

Traders said besides fall in demand from retailers and vanaspati millers, ample stocks position on increased supplies from producing regions mainly kept pressure on select edible prices.

Meanwhile, import of vegetable oils fell by 7 per cent in March to 11.09 lakh tonnes due to higher domestic output of oilseeds.

The country had imported 11.9 lakh tonnes of vegetable oils (edible and non-edible oils) in March 2016.

In the national capital, palmolein (RBD) and palmolein (Kandla) oils drifted lower by Rs 50 each to Rs 5,550 and Rs 5,600 per quintal, respectively.

Soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils followed suit and fell by Rs 100 each to Rs 6,700 and Rs 6,400 per quintal, respectively.

Mustard expeller (Dadri) too shed Rs 50 at Rs 8,250 per quintal.

On the other hand, groundnut oil prices moved in a narrow range in scattered buying or selling and pegged at last week's level of Rs 10,600 per quintal.

In the non-edible section, castor oils drifted lower by Rs 200 to Rs 9,700-9,800, while linseed held steady at Rs 9,800 per quintal, respectively.

Grains: In a mixed pattern of trading, wheat prices

drifted further lower at the wholesale grains market during the week following reduced offtake against adequate stocks position.

However, rice basmati edged up on scattered demand.

Traders said sufficient stocks position on the back of increased arrivals of new crop in the mandies from growing regions amid reduced offtake by flour mills, mainly kept pressure on wheat prices.

Besides, expectations of bumper crop this year also weighed on wheat prices, they said.

In the national capital, wheat (desi and wheat dara for mills) eased to Rs 2,200-2,500 and Rs 1,740-1,750 against last close of Rs 2,250-2,530 and Rs 1,755-1,765 per quintal, respectively. Atta chakki delivery followed suit and slipped to Rs 1,750-1,755 from previous level of Rs 1,760-1,765 per 90 kg.

Atta flour mills, maida and sooji also settled weak at Rs Rs 950-960, Rs 990-1,000 and Rs 1,100-1,110 as compared to previous levels of Rs 970-980, Rs 1,050-1,060 and Rs 1,190- 1,200 per 50 kg respectively in line with a wheat trend.

On the other hand, in the rice section, rice basmati common and Pusa-1121 variety edged higher to Rs 8,600-8,700 and Rs 7,000-8,300 from previous close of Rs 8,400-8,500 and Rs 6,800-8,100 per quintal, respectively.

However, other bold grain like barley rose by Rs 20 to Rs 1,580-1,600 per quintal.

Pulses: Weak conditions persisted at the wholesale pulses market during the week with prices of select pulses falling further on easing demand from retailers against ample stocks position due to improved supplies from producing belts.

However, gram and its dal prices firmed up on speculative buying.

Marketmen said sufficient stocks position in the market due to increased supplies from producing regions against fall in demand from retailers, mainly led to the decline in select pulses prices.

Meanwhile, the government has created buffer stocks of 18 lakh tonnes of pulses so far and also decided to procure dals from farmers till April 22, Food and Consumer Affairs Minister Ram Vilas Paswan said.

The government had decided to create 20 lakh tonnes of buffer stock through imports and local purchase, after pulses price crossed Rs 200 per kg in the retail market last year.

In the national capital, arhar and its dal dara variety fell by Rs 50 and Rs 100 to Rs 4,500 and Rs 6,400-8,200 per quintal, respectively.

Masoor small and bold moved down by Rs 100 each to Rs 4,600-4,900 and Rs 4,650-5,000 per quintal, respectively. Its dal local and best quality enquired lower by a similar margin to Rs 5,100-5,600 and Rs 5,200-5,700 per quintal.

Urad moved both ways on alternate bouts of buying or selling and finally settled at Rs 5,800-7,400 from previous level of Rs 6,300-7,200 per quintal. Its dal chilka local, best quality and dhoya were down by Rs 100 each to Rs 6,400- 6,500, Rs 6,500-7,000 and Rs 6,900-7,100 per quintal, respectively.

Peas white and green declined by Rs 100 each to Rs 2,600 -2,625 and Rs 2,800-2,900 per quintal, respectively.

On the other hand, gram moved up to Rs 6,000-6,500 from previous level of Rs 5,800-6,200 per quintal. Its dal local and best quality traded higher by Rs 300 each to Rs 7,100- 7,400 and Rs 7,500-7,600 per quintal.

Besan Shaktibhog and Rajdhani quoted higher at Rs 2,700 each instead of Rs 2,550 each per 35 kg bag.

Sugar: Sugar prices drifted lower at the wholesale market in the national capital during the week under review after the government allowed duty free import of raw sugar up to 5 lakh tonne till mid-June, triggering increased supplies from mills and recorded a fresh fall of up to Rs 80 per quintal.

Sentiments dampened after the government allowed the import of duty free sugar of 5 lakh metric tonne till mid-June to check the unwanted rise in sweetener prices, traders said.

Traders said ample stocks following increased supplies from mills mainly weighed on the sweetener prices.

Sugar ready M-30 and S-30 prices dropped by Rs 80 each to settle the week at Rs 3,820-3,870 per quintal, respectively.

Mill delivery M-30 and S-30 too eased by Rs 10 each to finish the week at Rs 3,550-3,680 and Rs 3,540-3,670 per quintal, respectively.

In the millgate section, sugar Modinagar and Khatuli dropped the most by Rs 40 each to close the week at Rs 3,600 and Rs 3,540, followed by Sakoti, Dhampur and Chandpur which dipped by Rs 30 each to end at Rs 3,600 per quintal, respectively.

Sugar Asmoli, Dorala and Simbholi also slipped by Rs 20 each to Rs 3,640, Rs 3,630 and Rs 3,650, while Mawana, Thanabhavan and Budhana moved down by Rs 15 each to Rs 3,640, Rs 3,635 and Rs 3,640 per quintal, respectively.

Also, the price of Kinnoni, Ramala, Anupshaher, Baghpat, Morna and Nazibabad lost Rs 10 each during the week to conclude at Rs 3,680, Rs 3,550, Rs 3,540, Rs 3,560, Rs 3,555 and Rs 3,550 per quintal, respectively.

Jaggery: The wholesale gur (Jaggery) market displayed a

firm trend during the week under review largely supported by paucity of stocks due to fall in supplies amid speculative buying by stockists and retailers, record gains of Rs 100 per quintal.

Muzaffarnagar and Muradnagar gur markets too exhibited a rising tendency during the period on scarcity of stocks amid pick up in offtake, adding gains up to Rs 220 per quintal.

Marketmen said paucity of stocks on negligible supplies from producing belts due to halt in production on rising mercury along with speculative buying by stockists and retailers, mainly attributed the uptick in gur prices.

Besides, higher demand from neighbouring states gave push to rising prices, they added.

In Delhi, gur Pedi and Dhayya prices were higher by Rs 100 each to conclude the week at Rs 3,200-3,300 and Rs 3,400- 3,500 per quintal, respectively,

Gur Chakku and Shakkar prices, however, remained unchanged at Rs 3,100-3,200 and Rs 3,500-3,600 per quintal on little doing.

At Muzaffarnagar, gur Chakku rose the most with prices climbing up by Rs 220 to Rs 2,750-3,020 per quintal as compared to previous week's close of Rs 2,650-2,800 per quintal.

Gur Khurpa and Laddoo prices also gained Rs 100 each during the week to finish at Rs 2,650-2,700 and Rs 2,850-2,950 per quintal.

Prices of gur Raskat also noted a rise of Rs 75 to settle the week at Rs 2,550-2,600 per quintal on strong demand from beer makers, driven by ongoing summer season.

In Muradnagar, gur pedi registered a gain of Rs 100 during the week to conclude at Rs 2,750-2,800, while gur dhayya remained at last week's closing levels of Rs 2,800- 2,850 per quintal.

First Published: Sat, April 15 2017. 12:32 IST