Edible oil prices to come down soon as the Centre had asked the companies to reduce MRPs
In a bid to provide relief to consumers, the Centre has asked the edible oil associations to ensure reduction in the maximum retail price (MRP) of cooking oils by up to Rs 15 per litre, with immediate effect. “The Department of Food and Public Distribution in a meeting on July 6th 2022 has directed leading Edible Oil Associations to ensure reduction in the MRP of edible oils by Rs. 15/- with immediate effect,” said ministry of consumer affairs, food and public distribution in a notification.
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The Union government has also advised the manufacturers and refiners to reduce prices of edible oils immediately and pass the benefits to consumers. “It was also impressed upon that whenever a reduction in price to distributors is made by the manufactures/refiners, the benefit should be passed on to the consumers by the industry and the Department may be kept informed on regular basis,” the ministry added. Those major oil producers who have not reduced the price earlier, have been asked to cut their prices as well.
This move came after the global prices of edible oils had reduced by USD 300-450 per tones in the last one month. India meets around 56 per cent of its annual edible oil demand from imports. Hence, a dip in the edible oil prices in the international market have a direct impact on the domestic market.
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The Centre has been monitoring prices of edible oils on a daily basis and taking necessary steps to keep a check on the rates of the cooking oil. “The edible oil prices in the international market are witnessing a dramatic fall, however, the situation in the domestic market is slightly different as the fall in the prices are gradual. The Government of India stepped in and a meeting was convened by the Department of Food and Public Distribution with the leading industry representatives including SEAI, IVPA and SOPA to discuss reduction in the retail prices of cooking oils amid a fall in the global prices,” the ministry further mentioned.
“During the meeting it was discussed that the international prices of imported edible oils are on a downward trend which is a very positive picture in the edible oil scenario and, therefore, the domestic edible oil industry needs to ensure that the prices in the domestic market also drop commensurately,” the ministry mentioned.
The retail prices of edible oils — mustard, sunflower, soyabean and palm oil — have reduced by 5-11 per cent in the country since June 1, according to the data provided by the department of consumer affairs. In May, the government had lifted customs duty and agriculture infrastructure development cess on the import of crude soyabean oil and crude sunflower oil for 20 lakh metric tonnes each per year for two fiscals, 2022-23 and 2023-24, according to a notification by the finance ministry.
