Groundnut oil prices slip in Gujarat

Ahmedabad, July 23 (UNI) Fearing a back-lash in the election year, the Gujarat government resorted higher level of palm oil imports in a bid to check groundnut oil prices, which had touched high recently and crossed Rs 800 mark per ten kg.

Prices of groundnut oil have already slipped to Rs 775 and it will further ease with the state allowing oil millers to mix groundnut oil with other edible oil within the permissible proportion.

According to Gujarat State Civil Supply Corporation sources, 18,000 tonnes of palm oil will be imported for distribution among the BPL consumers and will be in the market by December. Although, import of only 12,000 tonnes have been announced, the remaining 6,000 tonnes would imported soon.

The palm oil distribution which started from July 1 will help in a big way in bringing the prices down. The falling prices have had the desired effect on the stocks held by oil millers.

However, market sources said that more than forty per cent stock has been already been released into the market by both traders and oil millers who are now in a hurry to offload stocks.

According to traders, the prices are expected to fall further as the new arrival begins from October and sowing this season is much higher.

UNI