Kolkata: Rice and edible oil prices have fallen sequentially this month ahead of the main festive season, companies said. While most rice varieties that Indian households consume have become cheaper in the retail market, a drop in the wholesale prices of edible oils is expected to reflect at the retail level by month-end.
Rice prices have fallen as Bangladesh, which had aimed to import 1 million tonnes of the grain this year, has placed very little orders from India, traders said.
Bangladesh buys good quality rice unlike African countries where India exports broken rice.
Prices of miniket, swarna and sona masoori rice variants have dropped. The aromatic Gobindobhog rice, which was selling at Rs 220 per kg at the retail market, is now priced at Rs 160.
Most of the edible oils have become cheaper in the wholesale market. Consumption of edible oils typically increases during the festivals due to a rise in consumption of sweets and fried foods.
"Mustard oil prices have fallen and there has been some correction in prices of imported oils too," said Angshu Mallick, managing director of AWL Agri Business (formerly Adani Wilmar), the country's largest edible oil company.
Edible oil prices were on an upward rise for 6-7 months, pushing up household expenses driven by mustard oil. As the price of mustard oil is now cooling off, it is also having a downward impact on the entire edible oil complex.
Sudhakar Rao, managing director of Emami Agrotech, said retail demand for mustard oil is not showing any recovery and the pipeline is already filled. Also, there is ample supply of imported oils in the international markets which is keeping a pressure on sunflower, soybean and palm oil prices, he said.
Sandeep Bajoria, CEO of the Mumbai-based edible oil trading firm Sunvin Group, said international edible oil prices are not showing any upward trend.
"The landed price of imported soyabean oil is $1,190 per tonne, sunflower oil is $1,275 per tonne and crude palm oil is $1,180 per tonne. In August, India imported 16 lakh tonnes of oil,” he said. “The country's oil trade now has enough oil in hand and therefore prices are unlikely to go up."
In the rice market, the miniket variant is now selling at Rs 47-49 per kg, compared with Rs 55 last month. Sona Masoori has become cheaper at Rs 46 per kg from Rs 52, while the ratna variety is trading at Rs 36-37 per kg against Rs 41-42.
Keshab Kumar Halder, managing director of Halder Venture Ltd, a rice exporting firm, said there were fewer orders than expected from Bangladesh. "Very few buyers have placed orders and the quantities are less too," he said.
Suraj Agarwal, CEO of rice marketing and exporting firm RiceVilla said: "Bangladesh importers could not open letter of credits with their banks and that is why they could not import rice from India."
Rice prices have fallen as Bangladesh, which had aimed to import 1 million tonnes of the grain this year, has placed very little orders from India, traders said.
Bangladesh buys good quality rice unlike African countries where India exports broken rice.
Prices of miniket, swarna and sona masoori rice variants have dropped. The aromatic Gobindobhog rice, which was selling at Rs 220 per kg at the retail market, is now priced at Rs 160.
Most of the edible oils have become cheaper in the wholesale market. Consumption of edible oils typically increases during the festivals due to a rise in consumption of sweets and fried foods.
"Mustard oil prices have fallen and there has been some correction in prices of imported oils too," said Angshu Mallick, managing director of AWL Agri Business (formerly Adani Wilmar), the country's largest edible oil company.
Edible oil prices were on an upward rise for 6-7 months, pushing up household expenses driven by mustard oil. As the price of mustard oil is now cooling off, it is also having a downward impact on the entire edible oil complex.
Sudhakar Rao, managing director of Emami Agrotech, said retail demand for mustard oil is not showing any recovery and the pipeline is already filled. Also, there is ample supply of imported oils in the international markets which is keeping a pressure on sunflower, soybean and palm oil prices, he said.
Sandeep Bajoria, CEO of the Mumbai-based edible oil trading firm Sunvin Group, said international edible oil prices are not showing any upward trend.
"The landed price of imported soyabean oil is $1,190 per tonne, sunflower oil is $1,275 per tonne and crude palm oil is $1,180 per tonne. In August, India imported 16 lakh tonnes of oil,” he said. “The country's oil trade now has enough oil in hand and therefore prices are unlikely to go up."
In the rice market, the miniket variant is now selling at Rs 47-49 per kg, compared with Rs 55 last month. Sona Masoori has become cheaper at Rs 46 per kg from Rs 52, while the ratna variety is trading at Rs 36-37 per kg against Rs 41-42.
Keshab Kumar Halder, managing director of Halder Venture Ltd, a rice exporting firm, said there were fewer orders than expected from Bangladesh. "Very few buyers have placed orders and the quantities are less too," he said.
Suraj Agarwal, CEO of rice marketing and exporting firm RiceVilla said: "Bangladesh importers could not open letter of credits with their banks and that is why they could not import rice from India."
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