The Solvent Extractors' Association of India, the apex body representing the edible oils industry, has once again appealed to its members to reduce retail and wholesale prices of edible oils in line with the prevailing global market trends. This move is aimed at passing on the benefits of the continued fall in international prices to the consumers.
In a meeting held in June, the food ministry and prominent representatives from India's edible oil industry discussed the possibility of further reducing the retail prices of edible oils. This meeting marked the second time within a month that the Department of Food and Public Distribution had convened discussions with industry stakeholders.
Expressing serious concern over the domestic prices of edible oils, the government emphasized the need for aligning these prices with the declining international market rates. During virtual meetings with officials from the Department of Food & Public Distribution, SEA President Ajay Jhunjhunwala conveyed that several major brands have already reduced the prices of edible oils over the past few months in accordance with the falling global market.
In a letter addressed to its members, Jhunjhunwala urged all members to reduce the Maximum Retail Price (MRP) and Price to Distributor (PTD) of Edible oils in line with the reducing international market scenario. Furthermore, the edible oil industry body has requested distributors to closely monitor retailers within their distribution network, ensuring that the reduction in Maximum Retail Price is also reflected in the profit margins.
India, being the second-largest consumer and the leading importer of vegetable oils globally, meets 60 percent of its demand through imports. A significant portion of these imports comprises palm oil and its derivatives from Indonesia and Malaysia. Additionally, the country predominantly consumes edible oils derived from mustard, palm, soybean, and sunflower.
Meanwhile, the sowing of kharif oilseeds crops has commenced in India. As per the data released by the agriculture ministry, the sowing of oilseeds, including groundnut, soybean, sunflower, sesame, and others, has shown a year-on-year increase. This year, it reached 160.41 lakh hectares, compared to 155.29 lakh hectares during the same period last year.
The SEA President mentioned in a letter to its members that they were pleased to report India's monsoon was performing relatively well. He added that most oilseed production areas were receiving sufficient rain for sowing.
