Edible oil processors and manufacturers have reportedly agreed to cut prices by Rs 10-12 per litre in order to pass on the benefits of a decline in global prices to consumers.
The decision has been taken after a meeting with the food and consumer affairs ministry on Thursday.
“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,” said an official familiar with the matter told Hindustan Times.
As per the official, 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.
Notably, India imports up to two-thirds of its cooking oil and prices had spiralled in recent months owing to the Russia-Ukraine war and a brief ban on export of palm oil by Indonesia.
Over the past two months, international prices have come down since Indonesia removed its ban on exports, moderating prices.
The Centre has held several meetings since May with the manufacturers to review prices of edible oils and availability. The government had held a similar review on July 6 and asked edible oil firms to slash retail prices, citing falling global prices.
India mainly depends on Indonesia and Malaysia for palm oil imports. It depends on Ukraine, Argentina, Brazil and Russia for most of its sunflower oil and soyabean oil demand. India’s annual import of edible oil is nearly 13 million tonnes.