Edible oil prices unlikely to rise during festive season: FMCG cos
El Nino in oil-producing countries is felt, they said.
FMCG companies are, however, worried about rice production in the country as many eastern states that produce non-basmati rice have not received good rains which may harm the 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.
According to the India Meteorological Department, 287 out of 717 districts in the country were deficient in rainfall between June 1 and 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.
