Mumbai, Oct. 17
RAW (crude) groundnut oil prices in Mumbai have touched the current season's new high of Rs 525 for 10 kg on festival demand amid limited trading stocks, trade sources said.
Groundnut oil prices moved up significantly by about 17 per cent from the season's low of Rs 433 quoted on January 29, 2005.
"Demand for groundnut oil in the country is strong due to ongoing festivals - Diwali and Ramzan. Demand will continue till next week. Overall supply is less," Mr Jitesh N. Nisar, Vice-President of the Bombay Commodity Exchange, told Business Line.
Similarly, groundnut kernel and groundnut Java varieties' prices also touched the current season's high level on sustained domestic demand.
Groundnut kernel prices moved up by about Rs 300 to reach Rs 2,625 a quintal from Rs 2,310 quoted in mid-December 2004. Groundnut Java 80-90 variety prices also jumped by about Rs 400 to Rs 2,960 last week from Rs 2,525 a quintal in early-January.
"Demand for groundnuts is good due to seasonal buying from all over the country, despite reports of fresh inflows in Karnataka and Gujarat," said Mr Mahesh Chandarana of Harsiddhi Enterprise.
Fresh inflows of seeds in Karnataka have touched 35,000-40,000 bags daily (each of 38-45 kg), while daily inflows in Gujarat are around 60,000 bags (40 kg each).
"Farmers of Andhra Pradesh and Tamil Nadu are the major buyers in Karnataka as they are buying for sowing purpose due to fresh rains in both these States," he said.
Seed inflows in Gujarat and Karnataka are expected to pick up momentum by early November, a trader said.