Centre asks edible oil industry to slash prices

In a bid to provide relief to consumers, the central government asked the edible oil trade bodies to reduce edible oil prices by Rs 15 litre immediately, due to the drop in prices in the international market.

“The Department of Food and Public Distribution in a meeting on July 6, 2022, has directed leading Edible Oil Associations to ensure reduction in the MRP of edible oils by Rs 15 with immediate effect,” said the Ministry of Consumer Affairs, Food and Public Distribution in a notification.

The government also advised the manufacturers and refiners to reduce prices of edible oils and pass the benefits to consumers. Those major oil producers, who have not reduced the price earlier, have been asked to cut their prices as well.

Following the directive, Mother Dairy said it reduced the prices of soybean and rice bran oil up to Rs 14 per litre. It expects a reduction of MRP (maximum retail price) of sunflower oil in the next 15-20 days. The central government said it expected more companies to reduce MRPs of cooking oils.

The global prices of edible oils have reduced by $300-450 per tonne in the past one month. India meets around 60 per cent of its annual edible oil demand from imports. India mainly imports palm oil from Indonesia, Malaysia and Thailand. From Argentina, Brazil and the United States, India imports soy oil, while sunflower oil is imported from Ukraine and Russia.

Stating that the government is continuously monitoring the prices and availability of edible oils in the country, the food and public distribution ministry said it is imperative that the benefit of reduced duty structure on edible oils, and the continuous significant drop in global prices, be immediately passed on to the end consumers without fail.