Mumbai: Domestic edible oil prices are likely to remain firm for the next three-four months, the Centre for Monitoring Indian Economy (CMIE) has said.
Domestic edible oil prices rose in June 2008, mirroring the upward trend in the global scenario. International prices were rising due to short supply of edible oils and diversion of oilseeds towards bio-diesel manufacturing.
“We expect international prices of edible oils to remain firm as the Solvent Extractors Associaton (SEA) expects the world demand-supply situation to stay tight this year,” CMIE said in its monthly report here.
Meanwhile, edible oil imports have started declining.
SEA, in its early estimates, depicts a 38.8% fall in edible oil imports in May 2008.
SEA has attributed the fall in imports to restriction on stockpiling of edible oils imposed by some state governments.
CMIE expects edible oil imports to remain weak in the coming months and the rise in cumulative imports to come down to 7.2% at 49.3 lakh tonnes by end-October 2008.
Edible oil production is also expected to rise by 13% to 68.5 lakh tonnes in oil year 2007-08.
A further improvement in production to 73.2 lakh tonnes during November-October 2008-09 is expected to dampen imports by 15.4% to 41.7 lakh tonnes, CMIE said.