Leading Edible Oil Associations have been instructed by the Department of Food and Public Distribution to guarantee that the MRP of edible oils be reduced by Rs. 15/- with immediate effect. The Center also recommended that the price that manufacturers and refiners charge distributors be quickly cut in order to prevent any dilution of the price decrease.
It was also emphasized that whenever manufacturers or refiners lower their prices to distributors, the benefit should be passed on to consumers by the industry so that the Department can be updated often. Some businesses that have not decreased their prices and whose MRP is higher than that of competing 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 that the domestic edible oil industry must ensure that the prices in the domestic market drop in proportion. This price decrease must also be passed on to consumers quickly and without delay. This meeting also covered topics such as price data collection, Control Order on edible oils, and edible oil packaging.
It should be noted that the Department held a meeting with the leading edible oil associations in May 2022, and according to sources, the MRP of Fortune Refined Sunflower Oil 1 litre pack was reduced 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.
Oil prices fell as a result of the Central Government lowering the import duty on edible oils, making them cheaper. The industry was advised to ensure that the full benefit of the reduced duty is always passed on to consumers.
The price of edible oil is falling dramatically in the international market; however, the situation in the domestic market is slightly different because the price drop is gradual. The Government of India stepped in, and the Department of Food and Public Distribution convened a meeting with leading industry representatives, including SEAI, IVPA, and SOPA, to discuss lowering retail prices of cooking oils in the face of falling global prices.
According to the industry, global prices of various edible oils have fallen by USD 300-450 per tonne in the last month, but this takes time to reflect in retail markets, and retail prices are expected to fall in the coming days.
The Department is constantly monitoring the prices and availability of edible oil in the country, and it is critical that the benefit of the reduced duty structure on edible oils, as well as the continuous significant drop in prices on the international market, be immediately and without fail passed on to end consumers. Customers can anticipate saving some money on their kitchen budget.
