Drop in the price of edible oil by Rs 15 with immediate effect: from the government to the associations

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Given the downward trend in international prices for imported edible oils, the Center has ordered major edible oil associations to secure a reduction in the MRP of edible oils by Rs 15 with immediate effect, officials said on Friday.

The Department of Food and Public Distribution, under the Ministry of Consumer Food and Public Distribution, has also indicated that the price to distributors by manufacturers and refiners must be reduced immediately so that the lower prices are not diluted in any way.

In a meeting on Wednesday, he was also impressed that whenever a price reduction for distributors is made by manufacturers/refiners, the benefit should be passed on to consumers by industry and the Department. can be kept regularly informed. “Some companies that have not lowered their prices and have higher MRP than other brands have also been advised to lower their prices,” an official explained.

During the meeting, it was observed that there is a downward trend in the international prices of imported edible oils, which is a very positive picture in the edible oil scenario and, therefore, the domestic industry. of edible oils must ensure that prices on the domestic market also fall proportionately, and the benefits must be passed on quickly to consumers.

Other issues such as price data collection, edible oil control order and edible oil packaging were also discussed at this meeting.

In May 2022, the Department had called a meeting with the main edible oil associations and according to sources, the MRP of the 1 liter pack of refined sunflower oil was reduced to Rs 210 from Rs 220 and the 1 pack liter of soybean oil and ‘Kachi Ghani’ from Rs 205 to Rs 195.

The reduction in oil prices came in the wake of the central government reducing import duties on edible oils, making them cheaper. Industry was advised to ensure that the full benefits of reduced duties are passed on to consumers.

The prices of edible oils in the international market are falling dramatically, however, the situation in the domestic market is slightly different as the price decline is gradual.

The government intervened and a meeting was called by the Ministry of Food and Public Distribution with key industry representatives, including SEAI, IVPA and SOPA, to discuss the price reduction of retail cooking oils in a context of falling world prices.

The industry said global prices for various edible oils have fallen by $300 to $450 per tonne over the past month, but it takes time to reflect in retail markets and retail prices are expected to decline in the next days.

–IANS

miz/vd

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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