NEW DELHI: The negative trend in the edible oil market continues as the prices of packed mustard, soy and palm oil fell by Rs 15-20 per litre. This declining trend is mostly due to the Centre’s interventions.
In a bid to control the continuous rise in the cooking oil prices over the past year, the Central government had earlier cut the basic duty on Crude Palm Oil, Crude Soybean Oil and Crude Sunflower Oil from 2.5 per cent to Nil. The Agri-cess on these Oils has been brought to 5 per cent.
Although the Food Corporation and other central agencies’ activities have caused a decreasing trend, oil seed output has increased significantly this year which also helped in the cause.
The production increased from 252.5 lakh tonnes in 2015-16 to 384.98 lakh tonnes in 2021-22. Between 2015-16 and 2021-22, the average yield increased from 968 kg per hectare to 1292 kg per hectare.
The retail prices of packed mustard oil were Rs 200 per kg in March 2022, which have been reduced to Rs184 per litre as of today.
The price of packed palm oil fell from Rs 200 per litre in March 2022 to Rs 175 per litre in May 2022. According to the latest official data, this has now fallen below Rs 150 per litre.
The government has extended the free import of refined palm oils until 31st December this year.
The government mandated a reduction in edible oil prices of Rs 15 per litre beginning July 6 this year. This decision was taken, following a meeting between the Ministry of Consumer Affairs, the Department of Food and Public Distribution, and Food and Public Distribution.
The Centre had earlier instructed other merchants and refineries’ to immediately reduce expenses so that customers might profit much more quickly than anticipated. This was also an effort to avoid in any way depressing the prices of edible oil.
The significant price decrease is anticipated to manage local inflation and make products more affordable for Indian consumers.