Refined soy oil is one of the major consuming edible oil in India with market share of 15 -18% after palm oil (46%). Oilseeds contributed 7% of GDP and around 14 million farmers involved in oilseed cultivation. India is the worlds fifth largest edible oil economy after USA, China, Brazil and Argentina and largest importer of palm oil in the world. The total market size is Rs. 600 billion and import-export trade is worth Rs. 130 billion. India mainly imports crude oil, Soybean oil mainly imported from Argentina, whereas palm oil is imported from Malaysia and Indonesia.
FACTORS INFLUENCING PRICES-
Domestic Factors:
* Demand and Supply: Domestic oilseed production
* Pattern of consumption, Market share of Soy oil is around 24%.
* From oil extractors and farmers
* The crush margin between meal, oil and seed.
* Affect because prices of competitive oils, viz. Palm oil
* If Soy meal export parity
* Weather at all producing centers. The pod bearing period, being the most crucial.
* Demand of FMCG companies
Government Policies:
FACTORS INFLUENCING PRICES-
Domestic Factors:
* Demand and Supply: Domestic oilseed production
* Pattern of consumption, Market share of Soy oil is around 24%.
* From oil extractors and farmers
* The crush margin between meal, oil and seed.
* Affect because prices of competitive oils, viz. Palm oil
* If Soy meal export parity
* Weather at all producing centers. The pod bearing period, being the most crucial.
* Demand of FMCG companies
Government Policies:
* Import Export Policy
* Minimum Support Prices (MSP)
* Stock Limit
Global Factors:
* Global oilseed production US, Argentina and Brazil are major Exporters
* International soy price movement at CBOT, being the major international reference market
* International market price for soy meal export
* International Soy oil price movement.
* Import demand from china and EU- 25.
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