August 22, 2008

India's sunflower seed prices are expected to be subdued for the next few months as 'good' arrivals are expected to cap any price increases.

For 2007-08, India's production of sunflower seed rose 12 percent to 2.34 million tonnes seed from 2.09 million tonnes a year earlier.

Around 700,000 tonnes of sunflower seeds are expected to hit the market before October, N Raveendaran, project coordinator at the domestic and export market intelligence cell of Tamil Nadu Agricultural University said.

The price will be in the range of Rs. 2,400-2,600 per quintal in the months of September to December, he added.

At the Vellakovil regulated market in the southern Indian state of Tamil Nadu, spot prices of sunflower seed were quoted at around Rs. 2,729 per quintal on Monday (August 18, 2008).

Tamil Nadu is the fourth largest producer of the commodity in India.

Recently, India removed import duty of crude sunflower oil, palm oil and soy oil and slashed duties for refined sunflower oil and RBD palmolien and soy oil to 7.73 percent from 28.33 percent to cool inflation.

(US$1= Rs. 43.465)