NEW DELHI: The Department of Food and Public Distribution has directed leading Edible Oil Associations to reduce the prices of edible oils by Rs 15 with immediate effect.
The Centre has 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.
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 the Department may be kept informed on a regular basis.
At the same time, the companies which had not reduced their prices earlier and still hold higher prices than the other in the market, have also been advised to reduce their prices to support the market trend.
During the meeting, it was discussed that the edible oil prices are on a downward trend globally and therefore the domestic prices should also be reduced.
Other issues like price data collection, control orders on edible oils and the packaging were also discussed in the meeting.
Earlier in May 2022, the Centre had decided to reduce the edible oil prices by Rs 10-Rs15 depending upon the type of oil. The price of Fortune Refined Sunflower Oil 1 litre pack was decreased to Rs. 210 from Rs. 220. The prices of Fortune Refined Sunflower Oil 1 litre pack were reduced to Rs. 195 from Rs. 205, sources add.
The reduction in oil prices came in the wake of the Central government reducing the import duty on edible oils making them cheaper. The industry had advised ensuring 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. The prices of edible oils have fallen by 350-400 USD per tonne in the last month.
While the international market of edible oils is seeing a drastic downward trend, the change in the Indian market is however gradual. The Government of India 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 a reduction in the retail prices of cooking oils amid a fall in the global prices.
The Centre is continuously keeping an eye on the prices and the availability of edible oils in the market. “The consumers can look forward to saving some extra money in their kitchen budget”, a source from the Centre said.