The rise in edible oils has left the government breathless

- Commodity Current: Jayavadan Gandhi

As the bullish graph in every sector of commodities, including petrol and diesel, continues to rise, food prices in particular are suffocating the people. High fuel prices as well as excess rainfall have affected the demand and supply of essential food items, creating an uncontrollable situation for the government. Following the sharp rise in edible oil prices in the country, the government is on an action mode to curb inflation. Among the edible oils, Rayda's hottest market has become significant. At present, Rayda's oil is around Rs 5 per liter. Which was around Rs 150 to Rs 150 earlier this year.

Rayda's oil consumption is highest in India as well as in neighboring Bangladesh and Pakistan. For years, Rayda oil has been adulterated with some other edible oils, including palm oil, but since June the government has banned adulteration, the price of Rayda oil has been rising. Rayda oil is considered to be the best oil for food consumption in India but the United States has banned the consumption of Rayda oil. The U.S. Food and Drug Administration says rye oil is harmful to health. Peanut oil prices are skyrocketing despite the state's groundnut production in oilseeds this year. According to the business community, groundnut production is expected to be around 3 million tonnes higher this year with an increase of 12-13 lakh tonnes over last year. The government has announced the purchase of groundnuts at a support price this year. About two and a half lakh farmers have participated in the ongoing registration. Last year, the support price of groundnut was Rs. The government has increased it from Rs 105 to Rs 1,110. Seeing the high support prices, the farmers are likely to sell to the government.

There have been reports of bumper growth in groundnut as well as castor plantations. In recent years, castor production has declined to around 1.5 million tonnes. Due to which the castor market, which is around 500 to 1000, is being seen in the high range of 1100 to 1500. They are likely to take a break as foreign demand for castor oil weakens. Last year, castor oil exports were around 4.5 lakh tonnes, which has risen to close to five lakh tonnes. Exports are slowing, especially in China due to the power crisis and economic constraints.

Rising crude oil prices as well as weakening production have had a knock-on effect on guar. The guar index, which was launched two months ago, has gained more than 50 per cent. Guar gum futures on the index have come close to Rs 15,000 per quintal. In the last three months, the guar gum market has risen by about 3 per cent. Prices are also being supported by rising demand in the spot market. However, higher markets have affected exports. It is estimated that around 3 lakh sacks of guar will be produced this year. Guar production has halved in the last three years. Due to non-availability of prices in guar, farmers are reducing guar cultivation. Against which more focus is being laid on crops like cotton and groundnut. Along with guar gum, the guar seed market is also at a high of around 200.

With the dollar weakening during the festive season, gold and silver prices are hovering around Rs 500 with a slight rally. Investors are turning their attention to gold in global markets due to factors such as inflation and the power crisis. Seeing the unpredictable rise of the stock market, some classes are coming towards gold. Along with gold, the silver market has crossed the 2000 level. Profitable selling pressure is increasing at the upper level in silver. Nickel and copper have lost two per cent each due to rising selling pressure in metal commodities. But as the power crisis continues, support is being received at lower levels. Commodities like aluminum and zinc are under increasing selling pressure after 15 to 18 years. The boom is due to the ever-increasing demand in the face of declining production in aluminum.