look news india
Cottonseed Oil Market Prospects: Cotton yields this season have exceeded expectations, indicating a successful harvest for the industry. The historically volatile sector has experienced stability in the last few months and this trend is likely to continue for the next 3-4 months. Consumers have benefited from abundant supply, keeping prices of essential commodities stable. However, increased demand has led to a price hike of Rs 20 per liter during the festive season. An increase of 5-6 is expected.
Industry participants have warned that this year's sowing pattern could impact next year's cotton yield. According to the latest data from the Solvent Extractors Association of India, cotton has been sown in 102.05 lakh hectares in FY24 till July 19, which is about 3.61 per cent less than 105.66 lakh hectares in FY23.
Speaking at an event organised by the Indian Vegetable Oil Producers Association, Priyam Patel, Managing Director, NK Proteins Pvt Ltd, said there has been a significant shift in sowing preference towards groundnut, other cereals and millets. In areas like Punjab, farmers are reluctant to sow cotton because of expected damage from pink bollworm. This shift could lead to market volatility in the supply and demand of cottonseed oil next year.
Both government and private companies are actively promoting alternative oils such as rice bran oil, which has fewer supply problems than other crops. The demand for rice bran oil is rising due to the minimum support price (MSP) and effective marketing. Factors such as its health benefits and competitive pricing are increasing consumer awareness and preference.
The sector experienced significant volatility earlier this year due to global factors. However, the recent stabilisation of the situation has brought relief to many households. Government efforts to promote diversified oilseeds and the growing popularity of healthier options such as rice bran oil are reshaping consumer preferences and influencing sowing decisions.
Tal further added, the health benefits of rice bran oil and its consistent availability are making it a favourable choice among consumers. This change in consumer preferences encourages farmers to diversify their crops.
As the edible oil sector stabilizes, stakeholders remain mindful of market trends and consumer behavior. Ongoing efforts to diversify and promote alternative oils are likely to reduce some of the earlier volatility, giving the industry a more balanced outlook.
