The decline in the edible oil prices should be passed on to the consumers expeditiously, said Secretary, Department of Food & Public Distribution (DFPD), Government of India, Sanjeev Chopra during a meeting with the leading industry representatives in New Delhi today.
The international prices of imported edible oils are on a downward trend which gives a positive scenario in the edible oil sector in India. Representatives from Solvent Extraction Association of India (SEAI) and the Indian Vegetable Oil Producers’ Association (IVPA) were present to discuss a further reduction in the retail prices of cooking oils amidst a fall in global prices.
The industry informed that the global prices of different edible oils have fallen by US$ 200-250 per tonne in the last two months, but it takes time to reflect in the retail markets and the retail prices are expected to come down shortly.
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The leading edible oil associations were advised to take up the issue with their members immediately and ensure that the MRP of each oil be reduced in line with the decline in the international prices of edible oils with immediate effect. Price to distributors (PTD) by the manufacturers and refiners also needs to be reduced with immediate effect so that the price decline is not diluted in any way.
It was also impressed upon that whenever a reduction in price to distributors is made by the manufacturers and refiners, the benefit should be passed on to the consumers by the industry and the Department may be kept informed on a regular basis. Some companies which have not reduced their prices and whose MRP is higher than other brands have also been advised to reduce their prices.
Other issues like price data collection and packaging of edible oils were also discussed in this meeting. Earlier also, in pursuance of the department’s meetings with leading edible oil associations, the MRP of edible oils such as sunflower oil, soybean oil and mustard oil was reduced by the industry. The reduction in oil prices came in the wake of reduction of international prices and reduced import duty on edible oils making them cheaper. The industry was advised to ensure that the complete benefit of the reduced duty is passed on to the consumers.
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With the edible oil prices beginning to show a downward trend and set to witness further reductions to be made by the edible oil industry, Indian consumers can expect to pay less for their edible oils. The falling edible oil prices will help in cooling inflation as well.
The Department of Food & Public Distribution closely monitors and reviews the prices of edible oils in the country and steps in whenever any intervention is required to ensure the affordability of edible oils which forms an important part of human diet. The international and domestic prices of edible oil were on an upward swing during 2021-22 due to many global factors including higher input and logistic costs.
However, now the edible oil prices in the international market are witnessing a decline. The fall in the prices of edible oils in the domestic market is gradually being reflected in the domestic market which is providing relief to the consumers.
