According to market sources groundnut oil prices in the state would remain firm. At present a 10 kg tin now costs Rs 430 up from Rs 400, four days ago. Traders are expecting the prices to rise a little more in the coming days considering the general demand during the winter season.

The groundnut oil exports from the state to Mumbai and Nagpur markets have come to a standstill as Gujarat markets have restored the supplies to these markets. However, the Andhra market is capable of absorbing the additional supply as the demand is increasing. While cashing in on the Gujarat government's ban on exports, Andhra Pradesh traders have exported the oil to meet the demand from Mumbai and Nagpur. The state had exported about 10 tankers of 10 to 12 tonnes each a day from the Rayalaseema region, known to be the groundnut bowl of thestate.

At present, groundnut exports have slowly started picking up from this region, however, this will not affect oil supplies within the state, said Oil Millers' Association president Suresh Kumar Agarwal.