The Centre has directed edible oil associations to further reduce the maximum retail price (MRP) of major edible oils by Rs 8-12 per litre with immediate effect, in line with the global market. The food ministry said ‘some companies which have not reduced their prices and their MRP is higher than other brands have also been advised to reduce their prices’. It added 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. It highlighted that whenever a reduction in price to distributors is made by the manufactures/refiners, the benefit should be passed on to the consumers by the industry and the ministry may be kept informed on a regular basis.
The ministry said the international prices of imported edible oils are continuing on a downward trend and therefore, the edible oil industry needs to ensure that the prices in the domestic market also drop commensurately. The industry was told to ensure the price drop in the global market is passed on expeditiously to the end consumers and not in a delayed manner as is observed now. The leading edible oil associations were advised to take up the issue with their members immediately and ensure that the maximum retail price (MRP) of major edible oils to be reduced further by Rs 8-12 per litre with immediate effect.
The international and domestic prices of edible oil were on an upward swing during 2021-22 due to many geopolitical factors including higher input and logistic cost. However, the edible oil prices in the international market are witnessing a fall since mid-june 2022. The fall in the prices of edible oils in the domestic market is gradually being reflected in the domestic market. However, the government feels the associations can further reduce the prices and provide relief to the consumers. On the other side, the industry informed that the global prices of different edible oils have fallen by $150-200 per tonne in the last two months and they have reduced the MRP and will further reduce shortly.
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