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Wednesday / February 28. 2024
HomeAgroPolicyDFPD reviews edible oil prices in a meeting with stakeholders

DFPD reviews edible oil prices in a meeting with stakeholders

The leading Edible Oil Associations were advised to take up the issue with their members immediately and ensure that the MRP of each oil is reduced in line with the decline in the international prices of edible oils with immediate effect

The decline in the price of Edible Oil should be passed on to consumers expeditiously, said, Sanjeev Chopra, Secretary DFPD during a meeting with the leading industry representatives.

The international prices of imported edible oils are on a downward trend which gives a positive scenario in the edible oil sector in India. Representatives from the Solvent Extraction Association of India (SEAI) and the Indian Vegetable Oil Producers’ Association (IVPA) were present to discuss a further reduction in the retail prices of cooking oils amidst a fall in global prices.

The industry informed that the global prices of different edible oils have fallen by $ 200-250 per tonne in the last two months, but it takes time to reflect in the retail markets and the retail prices are expected to come down shortly.

The leading Edible Oil Associations were advised to take up the issue with their members immediately and ensure that the MRP of each oil is reduced in line with the decline in the international prices of edible oils with immediate effect. Price to distributors (PTD) by the manufacturers and refiners also needs to be reduced with immediate effect so that the price decline is not diluted in any way.

It was also impressed upon that whenever a reduction in price to distributors is made by the manufacturers/refiners, the benefit should be passed on to the consumers by the industry and this Department may be kept informed on a regular basis. Some companies which have not reduced their prices and whose MRP is higher than other brands have also been advised to reduce their prices.

Other issues like price data collection and packaging of edible oils were also discussed in this meeting.

Earlier also, in pursuance of the Department’s meetings with leading edible oil associations, the MRP of edible oils such as Sunflower Oil, Soyabean Oil and Mustard Oil were reduced by the industry. The reduction in oil prices came in the wake of the reduction of international prices and reduced 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.

With the edible oil prices beginning to show a downward trend and set to witness further reductions to be made by the edible oil industry, Indian consumers can expect to pay less for their edible oils. The falling edible oil prices will help in cooling inflation as well.

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