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Edible oil prices decline by Rs 8-10 per kg in last 30 days: Atul Chaturvedi

13 Dec 2021 Evaluate

Industry body -- Solvent Extractors' Association of India’s (SEA) President Atul Chaturvedi has said that edible oil prices declined by Rs 8-10 per kg in last one month (last 30 days) mainly on the back of lower import duties and may fall by Rs 3-4 per kg in coming months on higher domestic output of oilseeds and bearish trend in global markets. He said ‘The last few months have been harrowing for the Indian edible oil consumer largely on account of very high international prices of all oils viz palm, soya and sunflower’. He added that SEA had advised its members before Diwali to reduce prices to the maximum extent possible, and said that the Centre also reduced import duties on edible oils.

He said SEA’s members have been responding promptly in the past in passing on the benefit of lower prices to the consumers. The president said ‘With likelihood of lower import parities, our members have agreed to pass on the reduced cost to our consumers as seasons greetings. We feel the prices would be reduced by around Rs 3-4 per kg in foreseeable future by our members. This should provide relief to our edible oil consumers during festive season’. With a large soyabean crop of around 120 lakh tonne and groundnut crop in excess of 80 lakh tonne, Chaturvedi said the edible oil prices would now remain in check.

He added ‘The icing on the cake is that high mustard seed prices have elicited a massive supply side response from the farmers and they have planted an all-time high mustard crop in about 77.62 lakh hectares. This figure is higher by almost 30 per cent and has the potential of increasing domestic mustard oil availability by 8 to 10 lakh tonnes in coming year’. Chaturvedi said the global trend of edible oil prices is ‘relatively bearish and we feel prices would continue to move downward.’

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