Executives from top fast-moving consumer goods (FMCG) companies have reassured that edible oil prices are unlikely to surge during the upcoming festive season, despite the severe moisture stress affecting the domestic soya bean crop. This stability is attributed to the favorable international supply situation. However, they caution that a potential price increase in edible oils may occur from December to April-May of the following year due to the anticipated impact of El Nino on oil-producing nations.
On the flip side, FMCG companies express concerns regarding rice production in the nation, particularly in many eastern states that are major producers of non-basmati rice. The insufficient rainfall in these regions could pose a threat to the current standing paddy crop in the fields.
“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.
As per the India Meteorological Department’s data, 287 out of the country’s 717 districts experienced a rainfall deficit from June 1 to 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.