Source: Business Standard
This led to a moderation in prices and this year, with good rainfall, by mid-August, sowing for this kharif crop has covered 12.68 million hectares, against 10.64 million hectares at the same time last year. The all-India average wholesale price for a quintal of soybean oil, which had soared to a record Rs 8,138.4 last September, stands at Rs 7,809.8 a quintal in August.
However, there are some factors that can keep the prices from sliding significantly: The MSP for 2013-14 has been fixed at 13.6% higher than the previous year; heavy rainfall in the top producing states of Madhya Pradesh and Maharashtra have raised some small concerns over the quantity and quality of crop this year; there is high domestic demand and with the crop in US hit by heat in the Midwest, India stands to gain in the export market for soymeal.
IPM data till weekending August24. The Indicus Price Monitor (IPM), a product of Indicus Analytics PvtLtd, tracks real-time wholesale prices for 60 agricultural products from more than 3,000 mandis. Due to differences in methodology, the actual levels ofthe IPM differ from the corresponding Wholesale Price Index(WPI). However, broad trends are in sync.