Groundnut oil exports could take a hit over high domestic prices

Groundnut in short supply despite good output; farmers hold on to stocks as they seek better prices

While the government has allowed bulk exports of groundnut oil, edible oil companies are finding it difficult to make a dent in the export market. This is because groundnut oil prices are ruling at about $1,550 a tonne in the international market, while the price of the commodity in India is about $1,815 a tonne. According to players in the edible oil industry, domestic prices are high due to short supply of groundnut, which in turn has made Indian groundut oil prices unviable for exports.

“At the current rates in the domestic market, export of groundnut oil from India