The Department of Food and Public Distribution, headed by Secretary Shri Sanjeev Chopra, convened a second meeting with Edible Oil industry representatives to address further reduction in retail prices for the commodity. As global edible oil prices have decreased by USD 150-200 per tonne over the past two months, Edible oil industry has reacted positively to falling global prices by lowering retail prices and is expecting further reductions. Although there might be a slight delay in the retail market reflecting these price changes, consumers can look forward to continued declines in edible oil prices.
In a previous instance, the Department had organized a meeting with prominent edible oil associations, resulting in a reduction of Rs. 5-15 per litre in the maximum retail prices (MRPs) of Refined Sunflower Oils, Refined Soybean Oil, Mustard oil, and other edible oils from major brands. This decrease in prices was influenced by the reduction in international prices and import duties, making edible oils more affordable. The industry was advised to ensure that consumers receive the full benefit of reduced international prices without exception.
Edible oil industry was urged to ensure timely reductions in domestic prices in line with falling global trends as international prices of imported edible oils continue to decline. The leading Edible Oil Associations were advised to immediately address the issue with their members, lowering the maximum retail prices (MRPs) of major edible oils by Rs. 8-12 per litre. Manufacturers and refiners were also urged to promptly reduce prices to distributors to maintain the full impact of the price drop. It was emphasized that any reductions in distributor prices should be passed on to consumers, and the Department should be regularly informed. Companies with higher MRPs were specifically advised to lower their prices accordingly.
In the meeting, various issues such as price data collection and packaging of edible oils were also discussed. With the ongoing downward trend in edible oil prices, expected to continue as the industry takes further action, consumers can anticipate reduced prices for their edible oils. This decline in prices will contribute to easing concerns about inflation.
The Department of Food & Public Distribution actively monitors and evaluates edible oil prices in the country, intervening when necessary to ensure affordability of this essential dietary commodity. During the 2021-22 period, both international and domestic prices of edible oils were on an upward trajectory due to geopolitical factors and increased input and logistical costs. However, since mid-June 2022, international prices have been falling, gradually influencing domestic prices. The government encourages industry associations to further reduce prices and provide relief to consumers.
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