The Hindu Business Line : Edible oils may not rise on cut in soya output estimate

The Soyabean Processors Association of India (SOPA) has come up with a revised estimated of the crop production this week. It has pruned the estimate by about 13.5 lakh tonnes (lt) to 58.51 lt.

"There could be a short-term correction in edible oil prices due to the revision. The trade has already discounted the production fall," said Mr Rajesh Agrawal, Chairman, SOPA.

According to Mr Davish Jain, Convenor, SOPA Special Committee for Crop Review, there could be a corresponding 2.3 lakh tonnes cut in estimates of edible oil production in the country. "Whatever little shortage that might occur from the revision can be made good through imports," he said.

Oil recovery from soyabean is 17-18 per cent and, therefore, the cut in production estimate has not led to any alarming rise in edible oil prices. On Wednesday, refined soyabean oil was quoted at Rs 344 for 10 kg in Mumbai, up Rs 3 over Tuesday's rates.

According to industry sources, the trade had estimated it around 65 lakh tonnes only despite SOPA's bullish projections. "Still, we are shocked by the over 10 lt cut in the estimates. Maybe, they have gone to the other extreme," the sources said.

While the Solvent Extractors Association of India (SEA) had estimated soyabean output at 68 lt, the Union Agriculture Ministry has in its second advance estimates for oilseeds in January projected the production at 77.52 lt.

When contacted, Mr B.V. Mehta, Executive Director, SEA, said the solvent extractors would meet next month but any revision by the association was unlikely.

Mr Jain said low arrivals had forced SOPA to review the crop situation. Mr Agrawal said an irregular monsoon had affected the crop. "Due to late rains, the seeds weighed only 50 per cent of what they should."

"The yields were also lower due to prolonged dry spell in the growing areas," Mr Jain added.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
MCX launches futures trading in crude oil

JRG to open branch in Kochi

Sweating it out

In dire straits

Rubber static on poor buying

Southern mills way ahead in raw sugar imports

Mumbai sugar meet to discuss alliance

Jayalalithaa seeks import duty hike on tapioca starch

Rasi Seeds plans to launch more GM cotton

Edible oils may not rise on cut in soya output estimate

Plea to hike import duty on edible oils