Sundrop's share has dropped to 24 per cent from 34 per cent last year, as per the ORG-Marg retail audit for the urban market. The market share of Godrej Sunflower and Sweekar has each decreased to 11 per cent from 14-15 per cent last year.

In declining market conditions, regional brands such as Gemini and Gold Winner have gained share. This is mainly because regional players source locally, serve local markets and carry low stocks against the high inventories carried by national players.

A declining market last year benefited regional players and enabled them to appreciate their market share to seven per cent in the case of Gemini, and to 11 per cent for Gold Winner. In the previous year their market share was pegged at about two-three per cent.

According to industry observers, the declining prices of crude sunflower oil in the international market led to adverse conditions for national manufacturers of sunflower oil. National players were saddled with large inventories and were inflexible to align with the market price. Bulk imports of crude sunflower are normally contracted a month in advance by national players.

Prices of crude sunflower oil in the international market had touched a rock bottom of $325 per tonne last year after peaking at a high of $700 per tonne in 1997-98.

Regional players, however, are said to be resistant to price fluctuations as they source locally. In a declining market last year, when the MRPs of national brands were ruling high, regional players managed to reduce prices of their brands. This led to a gain in market share for the regional players.

Says Marico Industries CEO (Health Care Division) Pranab Datta: ``Against large national players, regional players are flexible enough to align with market prices because of the low stock they carry. In an ascending market, when prices firm up, the reverse is true. While national players manage to operate at lower prices, regional players have to resort to price mark-ups.''The total market size for consumer packaged edible oils market is estimated to be 20,000 tonnes. Packaged and branded sunflower oil constitutes nearly 56 per cent of the total market.

Industry observers point out that a correction is taking place in the international prices which are expected to firm up owing to the ensuing festive season. The current crude sunflower oil price is ruling at $400 per tonne. At the retail end, the MRPs of branded sunflower edible oils is in the range of Rs 40-50.