According to a statement issued by the Solvent Extractors' Association of India (SEA), major edible oil brands have cut their MRP by 10-15% to provide relief to customers. To provide relief to customers, major edible oil firms like Adani Wilmar and Ruchi Soya have lowered the maximum retail price (MRP) of their products by 10-15%.
"We are pleased to inform you that our key members have cut the MRP on edible oils marketed by them by 10-15% across the board to provide assistance to customers during the festival season," SEA said in a statement.
The government has reduced the import tax from 17.5 per cent to 12.5 per cent.
According to the association, the excessive price growth in edible oils in recent months as a result of high international prices has disturbed local consumers and policymakers.
To keep edible oil costs under control, the government has slashed import duties on both refined and crude edible oils multiple times this year.
To provide assistance to consumers, Union Food Secretary Sudhanshu Pandey convened a meeting of industry executives few days ago and requested them to respond positively to the reduction in import duty.
The government last reduced import duties on December 20, when the basic customs duty on refined palm oil was reduced from 17.5% to 12.5% until the end of March 2022.
To boost supply, the government has extended the period for traders to import unlicensed refined palm oil until December 2022 and market regulators have prohibited the issuance of new derivative contracts for crude palm oil and several other agricultural commodities.
According to SEA, India's reliance on edible oil imports amounts for around 65 percent of its entire consumption of around 22-22.5 million tonnes. To bridge the gap between demand and domestic supply, the nation imports 13-15 million tonnes. For the past two marketing years (November to October), due to the pandemic, imported quantities declined to around 13 million tonnes.
Major Edible Oil Brands that Cut MRP
Adani Wilmar (on Fortune brands), Bunge (Dalda, Gagan, Chambal brands), Ruchi Soya (Mahakosh, Sunrich, Ruchi Gold, and Nutrella brands), Emami (Healthy and Tasty brands), and Gemini are among the major edible oil brands that have reduced costs (Freedom Sunflower oil brand). Prices have been reduced by Frigorifico Allana (Sunny brand), COFCO (Nutrilive brand), Gokul Agro (Vitalife, Mahek, and Zaika brands), and others.
