The wholesale and retail price of soybean oil, sunflower oil, vanaspati oil, and refined palmolein oil have decreased in a week. The downward trend of edible oil prices is a sign that the consumer can expect relief in their expense on FMCG products.
The MRP of Fortune sunflower oil 1-litre pack has decreased price 210 from 220, the MRP of Fortune soybean oil 1 litre and the Kachi Ghani 1 litre pack has decreased to 195 from 205. The decline in the rates of edible oil is being seen because of the government measure of import duty reduction on edible oils.
However, Sudhanshu Pandey, Secretary of the Department of Food and Public Distribution said that it has been possible due to constant monitoring by the department, frequently engagement with all stakeholders and many government interventions. He also added that “All major edible oil brands have cut prices by 10-15 rupees.”
In the latest attempt to cool down retail inflation and to provide relief to consumers, the government has issued notification for allocation of Tariff Rate Quota (TRQ) for import of duty-free and AIDC cess-free 20-litre metrics tons of crude Soybean Oil and 20-litre metrics tons of Crude Sunflower Oil for the financial year 2022-2023.
Therefore, the government had to limit the stock of edible oils and oilseeds for a period up to 31 December 2022 and to ensure the government order, a Central team from the Department of Food and Public Distribution were conducted inspections of the stocks of edible oils & oilseeds held by Retailers, Wholesalers, Big Chain Retailers and Processors in major oilseed producing/consuming States to prevent hoarding and profiteering.
The government’s decision to reduce the excise duty levied on petrol and diesel has also helped in cooling down the prices of edible oil.
Therefore, the central government had also cut the basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil from 2.5 percent to zero. The AIDC cess had also been cut to 5 percent, The basic duty on Refined Soyabean oil and Refined Sunflower Oil has been slashed from 32.5 percent to 17.5 percent and the basic duty on Refined Palm Oils has also been reduced from 17.5 percent to 12.5 percent.