Edible oil prices likely to drop further amidst fall in global prices

Consumers across the country can expect further drop in the prices of edible oil. This is mainly due to the fall in prices of different edible oils globally. The Department of Food and Public Distribution secretary, Sanjeev Chopra convened a second meeting with the leading industry representatives including the Solvent Extraction Association of India (SEAI) and the Indian Vegetable Oil Producers’ Association (IVPA) in Delhi today.

It is pertinent to mention here that the global prices of different edible oils have fallen by USD 150-200 per tonne in the last two months. Industry sources informed that they have reduced the MRP and it will be further reduced shortly. However, there is an element of time lag in transmission of the price cut to the retail markets and the retail prices are soon expected to come down further, reported PIB.

The MRP of Refined Sunflower Oils and Refined Soybean Oil of some major brands have decreased by Rs. 5-15 per litre over a month. The prices of mustard oil and other edible oils as well have also reduced.

“The leading Edible Oil Associations were advised to take up the issue with their members immediately and ensure that the MRP of major edible oils is reduced further by Rs. 8-12 per litre, with immediate effect. Price to distributors by the manufacturers and refiners also needs to be reduced with immediate effect so that the price drop is not diluted in any way,” the report added.

The international and domestic prices of edible oil were on an upward swing during 2021-22 due to many geo-political factors including higher input and logistics costs. However, now the edible oil prices in the international market are witnessing a fall since mid-June 2022.