Domestic ghee prices on Saturday shot up by Rs 25 per 16-kg container in the wake of rising prices of palm products in the international and local market, market sources told Business Recorder.
With this recent upsurge, the locally manufactured ghee prices have reached the level of Rs 1,045 per 16-kg container from Rs 1,000 per 16-kg container across the country. "World's palm products prices have started its upward drive after a month staying at $630 per ton during the month and that is why the additional burden has been passed on to the end-consumers," said a leading RBD palm olive importer, who wished not to be named.
Sources said that that the domestic ghee prices have witnessed a straight jump of Rs 45 per 16-kg container during last three days, which has provided a chance to local traders to charge more for their commodity.
Senior traders pointed out that world palm product prices have once again reached to $640 per ton due to increased world's demand. Importers have held the increasing palm products prices in the world market as a chief reason behind the recent upsurge of the ghee prices in the country, besides increasing vessel freight charges by $7 per ton on palm products to $45 per ton from $38 per ton.
They said the diminishing palm products stock in the country was also the contributing factor in price increase of ghee, however sufficient raw material was still available with the manufacturing companies to produce ghee unremittingly. "There is no such threat to the ghee production in the country and manufacturers could continue ghee production without any problems," they added.
They said that in the absence of stocks in Malaysian market due to unfavourable weather conditions that had hit the palm crop to cut down greatly, the prices of palm products in the world market could go up further.
They said that in the face of lessening palm stock in the Malaysian market, Indian import of the commodity was further sparking threats of price hike in the world market.
"India is importing a high volume of palm products from Malaysia because it undergoes a weak palm crop currently while Indian government is also giving rebate on the import of palm products, allowing the importers to acquire more than required consumption quota of the commodity," they maintained. They said that despite increasing palm products prices, they would continue the import of the commodity.