Prices of edible oil to go down by Rs. 15

Hyderabad: The Central department of food and public distribution has directed leading edible oil associations to reduce the price of edible oils by Rs. 15 with immediate effect.

During a meeting held on 6 July, the Centre also advised that the price charged to distributors by manufacturers and refiners be reduced immediately so that the price drop is not diluted in any way.

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. Some companies that have not reduced their prices and their MRP is higher than other brands have also been advised to reduce their prices.

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. This price drop has to be passed on expeditiously to consumers, it was decided.

It may be recalled that in May 2022, the department had convened a meeting with leading edible oil associations and according to sources, the MRP of Fortune Refined Sunflower Oil (1 litre pack) had been decreased to Rs. 210 from Rs. 220 and the MRP of Soyabean (Fortune) and Kachi Ghani oil (1 litre pack) was reduced from Rs. 205 to Rs. 195. The reduction in oil prices came in the wake of the Central government reducing the 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.

Fall in global prices of edible 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 is gradual. The Central government stepped in and a meeting was convened by the department of food and public distribution with leading industry representatives, including SEAI, IVPA, and SOPA, to discuss a reduction in the retail prices of cooking oils amid a fall in the global prices.

The industry informed that the global prices of different edible oils have fallen by US$ 300-450 per tonne in the last month, but it takes time to reflect in the retail markets and the retail prices are expected to come down in the coming days.