Source: Business Standard
Prices had soared in 2012, with poor rain, low stocks and a 30% rise in minimum support price (MSP). There was a moderation in prices this year; the all-India wholesale price for a quintal of soya oil that peaked at Rs 8,138.4 last September averaged Rs 7,917.73 a quintal in October.
A big slide in prices is unlikely because the harvest in the first half of October has been hit by unseasonal rain, especially in Madhya Pradesh and Maharashtra. The Soybean Processors Association of India has revised its estimates downwards to 12.2 million tonnes, less than the ministry's estimates but higher than last year's crop. With the 2013-14 MSP at Rs 2,500 a quintal, 13.6% higher than last year, and pressures from rupee limiting cheap imports, domestic prices are not set to decline significantly.
IPM data till week ending November 2. The Indicus Price Monitor (IPM), a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 60 agricultural products from more than 3,000 mandis. Due to differences in methodology, the IPM levels differ from the corresponding WPI. But broad trends are in sync.