Prices of groundnut and cotton oil remained stable on nominal demand in the market. The price stuck to an all-time high and people are expecting prices to fall.

Groundnut oil in Rajkot and Saurashtra traded at Rs 1,625-1,630 for a 15-kg new tin, loose groundnut oil for 10 kg ruled unchanged at Rs 955-960 and Teliya tin for 15 kg was stable at Rs 1,490-1,499. About 70-80 tonnes of groundnut oil was traded.

Similarly cotton oil was stable at Rs 1,100-1,110 for a 15-kg new tin and wash price was Rs 637-640 for 10 kg. About 150-200 tonnes of cotton oil was traded.

Rajkot-based edible oil broker said, “Festival demand has yet to come in the market. Brands are waiting for some fall in prices. On the other hand, production of groundnut oil is lower due to scarcity of groundnut.”

Retail traders said, “Buying for Janmashthami festival will start from next week. At present people are buying groundnut oil as per requirement. Earlier people stocked it during festival time.”

The area under groundnut cultivation has gone down by 20 per cent to 34.40 lakh hectares in the week ending July 28 against 43.01 lakh hectares in the year-ago period. The sowing area under groundnut in kharif 2011 has been down due to less coverage from main growing States of Gujarat, Karnataka and Andhra Pradesh on account of less and delayed rainfall.

While groundnut has been sown in 13.10 lakh hectares in Gujarat, so far, the area in Andhra Pradesh and Karnataka is 7.85 and 2.68 lakh hectare, respectively.

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