Weak retail offtake may drag groundnut oil

Groundnut oil and cotton oil remained unchanged on Tuesday as the demand was below normal.

Last week, groundnut oil prices declined over Rs 60 a 15-kg tin as millers had ample groundnuts for crushing.

Groundnut oil loose stood at Rs 1,245-1,250 for 10 kg.

Groundnut oil new tin for 15 kg was quoted Rs 2,135-2,140 while teliya tin was traded at Rs 1,910-1,911. About 4-5 tankers of groundnut oil were traded in Saurashtra’s mills.

A Rajkot-based oil miller said: “In recent times, export demand in groundnut has been almost nil due to new rules of the Agricultural and Processed Food Products Export Development Authority (APEDA) and as a result, mills are having good supply of groundnut for crushing.”

New norms for groundnut export have been formulated by Apeda and they are likely to be on the lines of the process that is in place for grapes and pomegranate. It has also made registration of peanut shelling units mandatory for export of groundnut and its products.

According to the information by the Indian Oilseed and Produce Export Promotion Council, peanut shelling units have to get registered on the APEDA Web site before March 31.

“Retail demand is also weak. Groundnut oil price may decline further in this week,” the miller said.Washed cottonseed oil price stood at Rs 585-587 for 10 kg and washed cottonseed oil new tin was traded at Rs 1,050-1,060 for 15 kg.

About 15-20 tankers of cotton oil were traded here.

Meanwhile, the APEDA has made registration mandatory for peanut shelling units in order to export groundnut and groundnut products.

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