Following a meeting with the food and consumer affairs ministry on Thursday, edible oil processors and manufacturers decided to lower prices by 10 to 12 rupees to pass on further reductions in global prices.
Consumers can expect to get a relief of Rs 10-12 a liter on the price of cooking oils of all major brands in the next two weeks, as the central government asked industry representatives on
In response to softening worldwide pricing, cooking oil manufacturers have agreed to further reduce edible oil costs by Rs. 10–12. An official who wished to remain anonymous stated, "We had an excellent discussion with them and presented a full presentation with statistics.
Despite price reductions by manufacturers, the ministry believes there is still room for rate cuts as a result of a downward adjustment in global prices, the official stated while declining to give his name.
Up to two-thirds of India's cooking oil is imported, and prices have skyrocketed recently as a result of the crisis between Russia and Ukraine, and Indonesia, a major exporter, temporarily banning the sale of palm oil. Since Indonesia lifted its export ban during the previous two months, international prices have decreased, hence moderating prices.
Since May, the Center has met with manufacturers three times to discuss costs and stock. Following a meeting with manufacturers on July 6, the government conducted a review of a similar nature and requested edible oil companies to lower retail pricing in light of declining worldwide prices.
India imports palm oil from Indonesia and Malaysia, and the majority of its demand for sunflower and soy oils comes from Ukraine, Argentina, Brazil, and Russia. Nearly 13 million tonnes of edible oil are imported into India each year.
The government announced in July that the majority of imported cooking oils' maximum retail pricing (MRP) should decrease by up to 10 cents per liter within a week due to falling import prices.
The official quoted above stated that "edible oil companies should pass on the benefits of softening world costs to consumers and that there is an opportunity for this."
According to market statistics, the landing prices of palm oil decreased by over 14% to $1,170 per tonne on July 29 from a month earlier. Similar price drops have occurred for soybean and sunflower oils, which now cost $1,460/tonne and $1,550/tonne respectively.
Since prices soared to multi-year highs in May, cooking oil producers have decreased prices as a result of declining worldwide prices and lowered import levies. The nation's largest producer of edible oil, Adani Wilmar Ltd., reduced the cost of its goods sold under the Fortune brand by 10.
The Center has permitted the duty-free import of 20 lakh metric tonnes of each crude sunflower and soybean oil annually until 2024 to cut prices and lessen the burden on consumers. The cost of importing soybean and crude palm oil has also been decreased by the government.
