Rajahmundry, January 17
Heavy import of edible oil from foreign countries has been showing a drastic affect on local market. Edible oil imports are going through at both Kakinada and Krishnapatnam ports.
Sunflower oil from Ukraine and palm oil from Malaysia are being imported. Since all the transactions are done through online processes, demonetization failed to show any impact this business. But these imports have slowed down the local purchases, said wholesale traders.
The biggest wholesale market in both Godavari districts is Rajahmahendravaram. Earlier the daily oil turnover of Rs five crore has now dropped to Rs one crore.
Sunflower oil price per kg is between Rs 78 to RS 80 in wholesale market. There was not much difference between the present prices and those during festive season.
Palm oil price is Rs 68 per kg and the local oils like groundnut and rice bran is priced at Rs 80 per kg. But people mostly prefer sunflower or palm oil instead of groundnut and rice bran oils.
25 per cent of population uses other oils, while 75 per cent of population use palmoil and sunflower oils due to low cholesterol levels in these oils.
Groundnut is limited to byproducts. 90 per cent of oil usage is depended on imports only.
The AP government has encouraged farmers towards oil crops by offering various subsidies. A few local corporate companies were endorsed with the expansion responsibilities of crop in the wake of simplified financial policies.
Lands suitable for oil palm crops in various districts were allotted to companies. Even then self-sufficiency could not be achieved. The oil palm crop demands good prices based on its international market. One ton of oil palm bunch commands a price Rs 8,464. These prices have been on the rise since December last year. The price was Rs 7,250 in August earlier.
The largest cultivation of oil palm in the State is going on in East Godavari district, covering 42,000 acres. 70 per cent of cultivation is taken up in Rangampet, Gandepalli, Rajanagaram and Peddapuram mandals.
The oil prices are dependent on international market irrespective of festivals. 90 per cent of population is using imported oil while only 10 per cent are using locally manufactured oil.