Edible oils trade agog with talk of import duty hike

Edible oils market witnessed higher volumes on Wednesday as stockists covered about 1,700-1,800 tonnes of imported oils on speculation that the Government may raise import duty on edible oils.

Palmolein and cotton oil rose by Rs 3-4 respectively. Despite higher volumes, other oils remained unchanged. The sentiment was firm in the physical market, tracking higher closing of Malaysian palm oil futures. Domestic soya oil futures also extended gains.

Shailesh Kataria of Riddhi Brokers told

Business Line that on expectation of increase in import duty on edible oils by the Government local stockists came up with fresh orders. Malaysia recently lowered the export duty to zero level and Indonesia is expected to follow suit. This has lead to higher imports of edible oils in last two months in India. To protect the local oil industry, the Centre may raise the import duty”.

Ruchi sold about 650-700 tonnes of palmolein at Rs 507-509 and 250-300 tonnes of soyabean refined oil at Rs 695-698. Liberty sold 350-400 tonnes of super palmolein at Rs 560-562.

Resellers offloaded about 250-300 tonnes palmolein at Rs 502-503 ex JNPT. Some quantity of cotton oil was also traded, said sources.

In Saurashtra – Rajkot, improve demand from brand makers groundnut oils extended gains further by Rs 25 to Rs 2,000 (Rs 1,975) for telia tin and by Rs 10 to Rs 1,300 (Rs 1,290) for loose (10 kg).

Liberty was quoting palmolein at Rs 517-519 for Jan and Rs 527-529 for February; super palmolein Rs 562; soya refined oil Rs 700 and sunflower refined oil Rs 790.

Ruchi quoted palmolein at Rs 510 ex JNPT; Rs 515 for Jan; Rs 525 for Feb 1-25; soyabean refined oil at Rs 698 till Feb 10 and Rs 701 for Feb 10-20 and sunflower refined oil at Rs 785. Allana’s rates for palmolein was Rs 512 and super palmolein Rs 562. Resellers were offering palmolein at Rs 505 ex JNPT.

On the National Commodities and Derivatives Exchange, soyabean refined oil’s February futures closed higher Rs 715 (Rs 710.15); March up at Rs 696 (Rs 689.60) and April Rs 687.25 (Rs 680.40).

Malaysia’s crude palm oil’s February contracts settled higher at MYR 2,387 (MYR 2,375), March at MYR 2,415 (MYR 2,398) and April MYR 2,430 (MYR 2,415) a tonne.

The Bombay Commodity Exchange spot rates (Rs/10 kg) were : Groundnut oil 1,275 (1,275); soya refined oil 695 (695); sunflower exp. ref. 715 (715); sunflower ref. 790 (790); rapeseed ref. oil 808 (808); rapeseed expeller ref. 778 (778); cottonseed ref. oil 624 (620) and palmolein 505 (502).

Vikram Global Commodities has quoted Rs 572 for 10 kg Malaysian super palmolein.