Edible oil manufacturers are likely to cut prices by Rs 10-12 to pass on the benefits of easing global prices to consumers. They told this after a meeting with the food and consumer affairs ministry on Thursday, according to a media report.
“Cooking oil manufacturers have agreed to further slash edible oil prices by Rs 10-12 in view of softening global prices. We had a good meeting with them where we made a detailed presentation with data,” according to the report by Hindustan Times quoting sources.
Recently, edible oil companies, including Adani Wilmar, cut prices by up to Rs 30 per litre amid the fall in global prices. The company, which sells its products under Fortune brand, slashed the prices the most in soyabean oil. The move came after the government asked them to cut prices on edible oils in order to pass on the benefits of a decline in international edible oil rates to consumers.
Although manufacturers have cut prices, the ministry is of the view that there is further scope to reduce rates owing to a downward correction in global prices, the report said quoting an official.
“We are passing on the benefit of the reduced cost to our customers, who can now expect purest edible oils made with the highest safety and quality standards, which are also light on their pockets. We are confident the lower prices will also boost demand,” Adani Wilmar MD and CEO Angshu Mallick had said while cutting rates recently.
In June, edible oil makers had cut prices by up to Rs 10-15 per litre and prior to that, had also reduced the MRP taking cues from the global market. Taking note of a further drop in global prices, Food Secretary Sudhanshu Pandey called a meeting of all edible oil associations and major manufacturers to discuss the current trend and pass on the falling global prices to consumers by reducing the MRP.
In February, Mother Dairy, which sells edible oils under the Dhara brand, had also cut prices of soyabean and rice bran oils by up to Rs 14 per litre.
India, which is the world’s largest importer of palm oil, is dependent on Malaysia and Indonesia for its demand. The country imports over 13.5 million tonnes of edible oil every year, out of which, 8-8.5 million tonnes (around 63 per cent) is palm oil. Now, nearly 45 per cent comes from Indonesia and the remaining from neighbouring Malaysia. India imports roughly 4 million tonnes of palm oil from Indonesia each year.
In April, Indonesia had banned the palm oil exports, which pushed the prices in India. The export ban was not applicable to crude palm oil but will only cover refined, bleached, deodorised (RBD) palm olein. After almost a month of announcing the ban, the country lifted the restriction May 23.
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