Edible oil prices are not likely to go upwards despite soya bean crop in the country remaining under severe moisture stress, said executives of leading fast-moving consumer goods (FMCG) companies. The prices are expected to be cushioned by good international supply. However, there may be a price hike in edible oils from December through April-May next year as the impact of El Nino in oil-producing countries is felt, they said.
The companies are worried about rice production in the country as many eastern states that produce non-basmati rice have not received good rains which may harm the standing paddy crop in the fields, according to a report by The Economic Times.
"Monsoon is critical for the soya bean and groundnut crop. It should rain well in the next 10 days, otherwise the yield will be severely affected," said BV Mehta, executive director, Solvent Extractors Association.
According to the India Meteorological Department, 287 out of 717 districts in the country were deficient in rainfall between June 1 and August 4.
"India is sitting on a good volume of imported oil and prices are unlikely to go up soon. But definitely, the scanty monsoon will have an impact on the soya bean crop... That may leave an impact on consumption," said Angshu Mallick, managing director, Adani Wilmar.
The retail prices of refined sunflower oil, refined soyabean oil and refined palmolien had fallen by 29 per cent, 19 per cent and 25 per cent, respectively, in the last one year due to steps taken by the central government and a decline in global prices.