In the run up to the festive season, prices of cottonseed oil are expected to rise by close to 5 percent later this year, said Priyam Patel, Managing Director of NK Proteins, an Ahmedabad-based edible oil brand. “If there is higher demand in the market during the festive period (between August-November), then we will see a spike in prices for edible oil. This is because the supply is limited for indigenous oils. If we talk about cottonseed oil, its availability is expected to remain critical,” said Patel on the sidelines of 5th SEA-AICOSCA Cottonseed, Oil & Meal Conclave 2024, held here.
“This year, the monsoon is delayed. The estimated supply of cottonseed oil will not be enough. If the demand remains high, we will see prices rise by ₹5 per kilogram,” said the official from the company which sells edible oil under the “Tirupati” brand. A litre of cotton seed is currently selling at ₹115-130 in the retail market in Ahmedabad.
The consumption of edible oils has been growing at 5-7 percent per annum. India produces about 10-11 lakh tonnes of cotton seed oil of which 65 percent is consumed only in Gujarat.
Talking about the NK Proteins expansion plans, Patel said, “Our concentration as a company is on indigenous oils, because this is where the growth is going to come from. We are planning to introduce different kinds of indigenous oils in various regions of the country. We will be setting up a facility to manufacture mustard oil in Rajasthan. ”The company has an edible oil refining capacity of 1,775 tonnes per day,” he added.