Edible oil may become up to 10% cheaper in the next one week owing to fall in global prices due to coronavirus outbreak, according to industry executives.
As India imports around 70% of its annual consumption of 23.5 million tonnes of edible oil, global prices weigh strongly on the country's market.
"Low demand in China, which is one of the biggest consumers, has led to a fall in prices in the global market and simultaneously in the domestic market," Angshu Mallick, deputy chief executive officer at Adani Wilmar told the Economic Times.
He added that the company will pass on the benefit of this fall in prices to consumers "which will reflect in the sticker packs of branded cooking oils in the coming week."
Mallick added that the consumer will pay 10% less i.e. Rs 8 a litre for palm oil and soyabean oil and 7% less at Rs 5 a litre for sunflower oil.
Presently, the wholesale prices of branded soyabean and palm oil stand at Rs 78 a litre, whereas that of sunflower oil is Rs 82 a litre.
Mallick further told the news daily that as the coronavirus spreads to other regions of the world "we can expect a further drop in prices by Rs 3 a litre."
Sudhakar Desai, President at Indian Vegetable Oil Producers Association, also said that because of poor global demand, coronavirus outbreak and long liquidation, the prices of cooking oil in the international market have dropped 15-22% in the last 50 days.
Meanwhile, palm oil prices have dipped 20% and soya and sunflower oil prices fell 15% during this period.
Desai told the news daily that mustard oil prices have dipped 13% whereas, rice bran oil prices have come down by 20% in the past two months.