Chequered Edible Oils Economy

Chequered Edible Oils Economy THE vegetable oils market scene provides an interesting study. Few among the most experienced and shrewd observers can claim to have anticipated that the market would behave the way it has over the past few months. The failure of the major kharif groundnut crop in Gujarat which normally accounts for nearly 30 per cent of the country's total groundnut production has made hardly any impact on the market, either in terms of the flow of oil supply or prices. Nor has the anticipated increase in the demand for indigenous oils from the vanaspati industry in the wake of the reduction in the allocation of imported oils from 60 per cent to 50 per cent from the middle of November and further to 40 per cent from January 8 had any noticeable effect on the market which has remained distinctly subdued. Despite the fag*end of the season, the supply of rape/mustard oil has continued to be plentiful and the spurt in prices following the government decision allowing the vanaspati industry to use expeller oil in addition to the solvent extracted oil-the total permissible limit has been raised to 30 per cent since January 15 has proved to be very short-lived. Mustard oil which had been bid up from around Rs 107 to Rs 120 per quintal in December has again declined to around Rs 106/Rs 107. The pronounced weakness in rape/mustard oil has had its impact on the entire market.