The declining global prices of imported edible oils could be a positive development for the Indian edible oil industry. The Solvent Extraction Association of India (SEAI) and the Indian Vegetable Oil Producers' Association (IVPA) have convened to deliberate on potential further decreases in the retail prices of cooking oil, considering the prevailing global trends.
According to the industry, global prices of various edible oils have declined by USD 200-250 per tonne in the last two months, but this takes time to reflect in retail markets, and retail prices are projected to reduce soon. The top Edible Oil Associations were encouraged to promptly raise the problem with their members and ensure that the MRP of each oil be cut in line with the drop in international edible oil prices with immediate effect.
Manufacturers and refiners must likewise decrease their price to distributors (PTD) immediately so that the price decline is not diluted in any manner. It was also stressed that anytime manufacturers/refiners reduce their prices to distributors, the benefit should be passed on to consumers by the industry, and this Department should be kept informed on a regular basis.
Some companies that have not reduced their prices and have MRPs that are higher than other brands have also been advised to do so. This seminar also covered topics such as price data collection and edible oil packing.
Previously, the industry decreased the MRP of edible oils such as Sunflower Oil, Soyabean Oil, and Mustard Oil in response to the Department's talks with prominent edible oil organizations. Oil prices fell as a result of lower international pricing and lower import duties on edible oils, making them cheaper. It was urged to the industry to ensure that the full advantage of the reduced duty be passed on to consumers.
With edible oil prices beginning to fall and the edible oil sector preparing to make further reductions, Indian customers should expect to pay less for their edible oils. Falling edible oil prices would also assist to reduce inflation. The Department of Food and Public Distribution carefully monitors and examines edible oil prices in the country and intervenes whenever necessary to ensure the affordability of edible oils, which are an important part of the human diet.
Many global factors, including higher input and logistic costs, drove up international and domestic edible oil prices in 2021-22. However, edible oil prices in the international market are currently declining. The drop in edible oil prices in the domestic market is progressively being mirrored in the domestic market, offering relief to consumers.
