[INDIA] Refined soya oil prices rise by Rs 10 a litre

Retail prices of refined soya oil, which fell sharply after removal of import duty on crude soya oil, have soared by about Rs 10 a litre in the national capital due to tight domestic supply and rising global prices.

"Retail prices have gone up by Rs 10 a litre in domestic market during last two months," Adani Wilmar Assistant Vice President (Sales and Marketing) Angshu Mallick said.

He said the company had raised the price of its fortune refined soya oil to Rs 73 a litre. Fortune is the largest selling brand of refined soya oil in India. Fortune refined soya oil had skyrocketed to about Rs 80 a litre in March at the retail market here.

Prices fell to Rs 63 a litre in April after government removed custom duty on crude soya oil on March 31 as part of its measures to control rising inflation.

When asked about the reason, Mallick said: "There is extreme shortage of local crop in India. Soya bean is almost finished and there is no stock. Whatever is available, the prices are higher than the imported oil prices."

Besides, he said the international prices of crude soya oil have gone up sharply because of rise in crude oil prices.

"The soyabean oil prices have gone up to 1,430 dollar a tonne from 1,200 dollar a tonne in the international market from April," Mallick pointed out.

The market is bullish because of crude oil prices and "edible oil prices is likely to go up further", he said.

Solvent Extractors Association of India (SEA) Executive Director B V Mehta noted that Indian market moves in tandem with global markets where prices have gone up by 50 dollars in last one week only. India imports more than 40 per cent of its requirement of edible oils.

Source: Indian Economic Times

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