Edible oil prices ease as imports rise, but festive demand is a risk

Retail prices of mustard oil fell to INR 138 per litre (sample), as imports rose 9 percent.

Traders say Diwali buying could reverse the fall.

Retail packs of mustard, soyabean and sunflower oil have fallen by 3 to 6 percent since August. Import duty cuts in September and a bumper oilseed crop in two states are the main reasons, according to a trade association note.

Traders worry about festive demand, which typically lifts consumption by 15 to 20 percent in the six weeks before Diwali.

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