The government has said the prices of cooking oils, which rose abnormally in the last one year, have started to soften due to fall in global rates and lower domestic demand. Union Food Secretary Sudhanshu Pandey said there is a declining trend in the edible oil prices as per the futures market rates till December. He said the government is continuously keeping a watch on prices of edible oil and pulses and will take measures, if necessary, at an appropriate time.
The secretary noted that demand for cooking oils has come down by 15-20 per cent because of the pandemic. He added that an inter-ministerial committee reviews prices of essential items every week. As per the government data, the retail prices of edible oils have risen more than 60 per cent in over a year and is adding to the woes of consumers already reeling under the economic distress induced by the COVID-19 pandemic.
India meets 60 per cent of edible oil demand through imports. Trade body Solvent Extractors Association of India (SEA) had suggested the government to revisit duty reduction measures only after the Kharif oilseed planting is over to ensure no negative signals go to local oilseed farmers. To give relief to the poor, SEA had also suggested the government to supply edible oils at subsided rates via ration shops. Among others, it had asked the government to curb speculative trade in agri futures market.