Poor demand from brand firms and retailers pulled down groundnut oil on Tuesday. The high price of the oil has brought down demand, said a broker here. Moreover, retail buyers have switched over to cheaper substitutes, he added.
Loose oil traded lower by Rs 20 at Rs 1,215-1,220 for 10 kg. A new 15-kg tin was at Rs 2,055-2,060 and a 15-kg telia tin declined by Rs 15 to Rs 1,864-1,865. About 40-50 tonnes of groundnut oil was traded by mills in Saurashtra.
According to a market analyst, traders were in no mood to make new purchases as stocks bought earlier to meet festive demand are still lying unsold.
The Federation of Indian Exporters called a meeting in Ahmedabad to resolve issues that emerged after export of groundnut oil in small packs was banned. Consignments are lying at various ports awaiting shipment.
Cotton oil remained unchanged on festival demand at Rs 1,225-1,235 for a 15-kg new tin and at Rs 720-723 for 10 kg. About 150-200 tonnes of cotton oil were traded here on Tuesday.