According to MCX, the commodity category Oil seeds and oils include the following types of products- RBD Palmolein, crude palm oil, refined soy oil, rice bran oil, castor seed, soy oil, canola oil, sunflower oil and others. Some of the oil seeds commodity prices are INR 630/metric ton for RBD Palmolein, INR 8030/ metric ton for sesame seeds, INR 430/ metric ton for mustard seeds, and INR 3,338/metric ton for castor seeds. Since the production of oil seeds fluctuate due to numerous factors, Oil seeds and oils price today depends on these factors, as well as the demand of investors.
Edible Oil Production in India
India is one of the primary producers and consumer of edible oils. The vegetable oil economy of India is one of the biggest in the world. The diverse ecological conditions of India make it favourable for growing 9 types of oil seed crops throughout the year, 7 of which are edible ones (groundnut, mustard, sunflower, sesame, soybean, safflower and niger). Oil seeds are cultivated across the country in bulk. Lately, the consumption of edible oils has skyrocketed, and is likely to increase. Palm oil is imported from Indonesia and Malaysia to meet a percentage of our requirements.
Whole oil seeds have high levels of energy, protein and fibre. For this reason, oil seeds are frequently incorporated into the diet of lactating dairy cows. Oil seeds are packed with energy due to the high concentration of oil in them. They are a good source of vitamins, minerals and fatty acids. The protein from oil seeds adds a significant amount of protein to our diets.
Oil seeds are cultivated across the world because of the edible oil they produce, which is invaluable. The ways in which the oil from these oil seeds can be used are increasingly becoming more diverse. Besides the huge quantities used for human consumption and cattle fodder, the bio diesel industry is also taking up a sizeable portion of the vegetable oil produced.
Investing in oil seeds is an innovative way to diversify your portfolio. It is also as excellent hedge against the effect of inflation.The principles of demand and supply govern all commodities in the market, and oil seeds commodity prices are no exception. Demand from major consumer countries is also a vital factor that affects prices. Since oil seeds are primarily used as food, their prices are likely to steadily increase, as global population keeps increasing. The world population is likely to cross 9 billion by 2050, which would require an increase in food and oil production by 70% to sustain. Because of this, the oil seeds price today is gradually increasing and is likely to keep doing so.