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Govt directs edible oil makers to cut prices by Rs 15 with immediate effect

Govt directs edible oil makers to cut prices by Rs 15 with immediate effect

The Centre also advised that the price to distributors by the manufacturers and refiners also needs to be reduced immediately so that the price drop is not diluted in any way. 

Govt directs edible oil makers to cut prices by Rs 15 with immediate effect. (Representative image) Govt directs edible oil makers to cut prices by Rs 15 with immediate effect. (Representative image)

The central government on Friday directed edible oil makers to ensure reduction in the Maximum Retail Price (MRP) of edible oils by Rs 15 with immediate effect.

The announcement came after July 6 meeting called by Food Secretary Sudhanshu Pandey with all edible oil associations and major manufacturers to discuss the current trend and pass on the falling global prices to consumers by reducing the MRP. Business Today had earlier reported that leading edible oil manufacturers in the country have agreed to further reduce prices,

During the meeting, the Centre also advised that the price to 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, "Some companies which have not reduced their prices and their MRP is higher than other brands have also been advised to reduce their prices."

Further, in the meeting, it was also 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.

As India imports more than 60 per cent of its edible oil requirement, retail prices came under pressure in the last few months taking cues from the global market. However, there has been a correction, resulting fall in global prices.

Edible oil makers had cut prices by up to Rs 10-15 per litre last month and prior to that had also reduced the MRP taking cues from the global market.

It may be recalled that 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 1 litre pack had been decreased to Rs. 210 from Rs. 220 and MRP of Soyabean (Fortune) and Kachi Ghani oil 1 litre pack from Rs. 205 to Rs. 195. 

"The reduction in oil prices came in the wake of Central Government 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 Ministry further stated. 

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. In regard to this, the Ministry highlighted the edible oil industry informed that the global prices of different edible oils have fallen by $300-450 per tones 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.