“The burden of fall in prices of edible oils should be passed on to the consumers at the earliest.”
New Delhi:
The Center today asked edible oil companies to cut edible oil prices in line with fall in global prices for the benefit of consumers.
A major importer of edible oils, India imported cooking oil worth Rs 1.57 lakh crore during the 2021-22 marketing year (November-October).
It buys palm oil from Malaysia and Indonesia while soybean oil is being imported from Argentina and Brazil.
“The benefit of fall in prices of edible oils should be passed on to the consumers at the earliest,” Food Secretary Sanjeev Chopra said during a meeting with key industry representatives here.
An official statement said that representatives of Solvent Extraction Association of India (SEA) and Indian Vegetable Oil Producers Association (IVPA) are meeting to discuss further reduction in retail prices of cooking oil amid fall in global prices. were present.
Mother Dairy, which sells cooking oil under the Dhara brand, on Thursday said it has reduced the MRP by Rs 15-20 per liter and fresh stock will hit the market next week.
According to government data, the retail price of packaged groundnut oil on Thursday was Rs 189.13 per kg, mustard oil Rs 150.84 per kg, vegetable oil Rs 132.62 per kg, soybean oil Rs 138.2 per kg, sunflower oil Rs 145.18 per kg and palm oil Rs 110.05. Rs per kg.
The Food Ministry said that there is a declining trend in the international prices of imported edible oils which gives a positive outlook for the edible oil sector in India.
“The industry has informed that global prices of various edible oils have declined by $200-250 per tonne in the last two months, but it will take time to reflect in the retail markets and retail prices will recover soon,” the statement said. Only a decrease is expected.” Said.
Edible oil associations have been advised to immediately take up the issue with their members and ensure that the MRP (Maximum Retail Price) of each oil is reduced in line with the fall in international prices of edible oils with immediate effect.
Besides this, the food ministry has asked to reduce the price at which edible oils are supplied by manufacturers and refiners to distributors.
Whenever the price is reduced by the manufacturers/refiners to the distributors, the benefit should be passed on by the industry to the consumers.
Some companies, which have not reduced their prices and have higher MRP as compared to other brands, have also been advised to reduce their prices,” the statement said.
Other issues like price data collection and packaging of edible oils were also discussed during the meeting.
Even before this, the industry had reduced the MRP of edible oils.
The reduction in oil prices was due to reduction in international prices and lowering of import duties on edible oils to make them cheaper.
“With edible oil prices beginning to decline and further cuts set to be undertaken by the edible oil industry, Indian consumers can expect to pay less for their edible oils. The fall in edible oil prices will help cool ” Inflation too,” the statement said.
The Department of Food & Public Distribution is closely monitoring and reviewing the prices of edible oils and steps are taken whenever any intervention is required to ensure affordability of edible oils.
International and domestic prices of edible oils were on an upward trajectory during 2021-22 due to several global factors including higher input and logistic costs.
The statement said, ‘However, now the prices of edible oil are seeing a decline in the international market. The fall in the prices of edible oils in the domestic market is gradually being reflected in the domestic market, giving relief to the consumers.
India imports more than 50 per cent of its total edible oil requirement.
The import of edible oils from November 2022 to March 2023 has increased to 69,80,365 tonnes from 56,42,918 tonnes in the same period of the previous oil marketing year.
India’s edible oil import bill increased by 34 per cent to Rs 1.57 lakh crore in marketing year 2021-22, while in volume terms it increased by 6.85 per cent to 140.3 lakh tonnes.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)