Adani Wilmar, Patanjali Foods & other edible oil shares rose up to 7.5% today; here’s why

Shares of edible oil firms such as Adani Wilmar Ltd, Patanjali Foods Ltd and Kriti Nutrients among others rose up to 7.5% in Friday’s trade after the government allowed the import of edible oils at lower tax rates until March 2025.

Shares of Adani Group’s FMCG firm Adani Wilmar, which is into the manufacturing and selling of cooking oil, zoomed 5.2% to Rs 369.75 against the previous close of Rs 351.35. Market cap of the firm rose to Rs 47,503 crore on BSE. Total 4.29 lakh shares of the firm changed hands amounting to a turnover of Rs 15.59 crore on BSE.

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Stock of another FMCG firm Patanjali Foods engaged in the selling of cooking oil surged 5.55% to Rs 1628 on BSE. Market cap of the firm climbed to Rs 58,139 crore. Total 0.42 lakh shares of the firm changed hands amounting to a turnover of Rs 6.66 crore on BSE.

Shares of soyabean oil seller Kriti Nutrients gained 7.42% to Rs 91.24 on BSE. Market cap of the firm climbed to Rs 58,139 crore. Total 0.26 lakh shares of the firm changed hands amounting to a turnover of Rs 23.49 lakh on BSE.

Shares of vegetable oil seller Shri Gang Industries and Allied Products Ltd rallied up to 4.97% to Rs 126.70 on BSE. Market cap of the firm climbed to Rs 213.37 crore. Total 0.20 lakh shares of the firm changed hands amounting to a turnover of Rs 23.76 lakh on BSE.

The lower import duty structure on crude palm oil, crude sunflower oil and crude soyoil was set to expire in March 2024, according to a government order on December 30, 2022.

But with the fresh order, the lower import duty structure on crude palm oil, crude sunflower oil and crude soyoil has been extended by another year.

In June 2023, the government had trimmed the basic import duty on edible oils to ensure their availability to consumers at affordable prices. The basic import duty on refined soyabean oil and refined sunflower oil was cut from 17.5 percent to 12.5 percent.

A reduction in import duty on refined sunflower oil and refined soyabean oil will benefit the consumers, as it will help in easing the domestic retail prices, the Consumer Affairs, Food, and Public Distribution Ministry had said.

The ministry said it was closely monitoring the prices of edible oil in the country and ensuring its adequate availability to consumers.

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