The edible oil prices may come down by Rs 3 to 5 per liter in the coming days. This is because the Solvent Extractors Association (SEA), an industry body, has made such a demand from its members.
SEA appealed
The SEA on Monday asked its members to immediately reduce edible oil prices. This reduction will be made in the MRP. However, the organization has also said that with the kind of global developments, edible oil is not expected to fall much.
Second cut demand
This is the second time SEA has appealed to its members to cut the maximum retail price. Last time, it had sought a reduction in prices by Rs 3 to 5 around Diwali in November 2021. After this, the oil companies did this. India meets over 60% of its edible oil demand through imports.
Import duty on palm oil reduced
In the last few months, India has taken various steps like reducing import duty on palm oil, imposition of stock limits, etc., to keep the retail prices of edible oils under check. Despite the government’s proactive efforts, average retail prices are still higher than in the same period a year ago.
No immediate signs of softening
The Solvent Extractors Association of India said that these prices do not show any immediate signs of moderation. Some exporting countries like Indonesia have also started regulating palm oil export through licenses.
Edible oil prices are sky-high
Global edible oil prices are skyrocketing. Tensions between Russia and Ukraine add to the fire for sunflower oil coming from that region. Bad weather in Brazil due to La Nia has also significantly reduced soy crops in Latin America. Given this global situation, SEA stated that, its members are struggling to maintain the supply of edible oils.
The mustard crop is better
SEA said that the domestic mustard crop is much better. A record crop is expected during the current year. This can give some relief to the customers. In addition, the government has been proactive in taking immediate steps to soften the prices before the new mustard crop hits the market. The recent 2.5% reduction in import duty on crude palm oil is an example of this.
Prices increased this year compared to last year
According to consumer affairs ministry data, the average retail price of groundnut oil stood at Rs 177.75 per kg on February 20, up from Rs 164.55 per kg a year ago. Similarly, the retail price of mustard oil was Rs 187.03 per kg on February 20 this year as against Rs 145.02 per kg at the same time in 2021. The data shows that the retail price of sunflower oil has also gone up to Rs 161.75 per kg from Rs 144.22 per kg, while that of palm oil has increased from Rs 113.89 to Rs 130.53.
Edited By- Kritika Kashyap
Published By- Bharat Anand
