The Centre also advised that the price to the distributors by the manufacturers and refiners also needs to be reduced immediately so that the price drop is not diluted in any way.
New Delhi: In order to provide a relief to the people, the Centre asked the leading edible oil associations to cut down prices by Rs 15 with immediate effect. The direction to the tune was given on Wednesday in a meeting.
The Centre also advised that the price to the distributors by the manufacturers and refiners also needs to be reduced immediately so that the price drop is not diluted in any way. In a statement the Ministry of Consumer Affairs, Food & Public Distribution said, “It was also impressed upon that whenever a reduction in price to distributors is made by the manufactures/refiners, the benefit should be passed on to the consumers by the industry and the Department may be kept informed on regular basis. Some companies which have not reduced their prices and their MRP is higher than other 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, therefore, the domestic edible oil industry needs to ensure that the prices in the domestic market also drop commensurately. And, this price drop has to be passed on expeditiously to consumers without in a laggard fashion. Other issues like price data collection, Control Order on edible oils and packaging of edible oils were also discussed in this meeting.
In May 2022, the department had convened a meeting with the leading edible oil associations and according to sources, the MRP of Fortune Refined Sunflower Oil’s 1 litre pack had been decreased to Rs 210 from Rs 220 and MRP of Soyabean (Fortune) and Kachi Ghani Oil’s 1 litre pack from Rs 205 to Rs 195. The reduction in oil prices came in the wake of the Centre reducing the import duty on edible oils making them cheaper. The industry was advised to ensure that the complete benefit of the reduced duty is passed on to the consumers invariably.
The edible oil prices in the international market are witnessing a dramatic fall, however, the situation in the domestic market is slightly different as the fall in the prices are gradual.
The Centre stepped in and a meeting was convened by the Department of Food and Public Distribution with the leading industry representatives including SEAI, IVPA and SOPA to discuss reduction in the retail prices of cooking oils amid a fall in the global prices. The industry informed that the global prices of different edible oils have fallen by USD 300-450 per tonne in the last one month but it takes time to reflect in the retail markets and the retail prices are expected to come down in the coming days.