Linseed, castor and mustard oil prices rise in Nagpur ahead of Diwali on paint industry demand

With Diwali near, prices of some edible and industrial oils have gone up in Nagpur's oil market. Linseed, castor and mustard oils are rising, while soyabean oil has held steady.

Linseed oil has seen the sharpest jump. Paint and distemper manufacturers are buying more of it, and in a month the oil has become Rs 1,050 costlier, reaching Rs 3,300 per 15-kg tin. About a month ago it was Rs 2,250 per tin.

According to oil trader Anil Agrawal, the larger consumption of linseed oil in the paint and distemper industry has driven the sharp rise. Demand for linseed oil has also emerged for lighting lamps during Diwali. Industrial consumption, along with the extra festival demand, is thus seen as the reason for the rise in prices.

The story of castor oil is similar. Paint and distemper companies are raising their purchases of both oils. About a month ago castor oil was selling at Rs 2,500 per 15-kg tin. It has now risen by Rs 400 to Rs 2,900 per tin. Rising industrial demand has kept its prices firm in the market.

Mustard oil prices are also rising steadily. According to information available in the market, farmers in Uttar Pradesh and Bihar are not selling their mustard crop in the market, which has put pressure on supply. About a month ago mustard oil was Rs 2,550 per 15-kg tin; it is now Rs 2,800 per tin.

Soyabean oil, on the other hand, has remained steady at Rs 2,550 per 15-kg tin.

In the wholesale market, prices are continuing to firm up because of heavy buying by the industrial sector. The rise in oil prices during the festival season is affecting ordinary consumers as well as traders. The growing industrial demand for linseed and castor oil and the pressure on mustard supply have made the price rise a talking point in the market.