Stating that domestic edible oil prices show no signs of easing given global developments, industry body SEA on Monday called on its members to cut the minimum retail price (MRP) for cooking oils from 3 to 5 rupees per kg with immediate effect in order to relieve consumers.
This is the second time the industry body has asked its members to reduce the MRP. Last time it asked its members to reduce MRP on edible oils by Rs 3-5/kg around Diwali in November 2021.
India, which meets more than 60% of its edible oil demand through imports, has taken several measures such as reducing import duties on palm oils, imposing storage limits during months in order to control domestic retail prices.
Despite these proactive efforts by the government, average retail prices across India continue to be higher than a year ago.
“These prices show no immediate sign of moderation and some exporting countries like Indonesia have also started regulating palm oil exports through licensing,” the Solvent Extractors Association of India (SEA) said in a statement. communicated.
Global edible oil prices are skyrocketing and this “imported inflation” is not only giving sleepless nights to all stakeholders but also to unhappy Indian consumers, he said.
In addition, tensions in the Black Sea region between Russia and Ukraine are fueling the fire in the sunflower oil complex that comes from this region. Bad weather in Brazil due to La Niña has also drastically reduced the soybean harvest in Latin America, he added.
Given this global situation, SEA said that although its members are struggling to maintain a smooth supply chain for edible oils, they are aligned with proactive government decisions.
SEA said it had “requested and advised its members to reduce the minimum retail price by Rs 3,000 to 5,000 per tonne (Rs 3 to 5 per kg) on edible oils, with immediate effect to soften prices.”
The industry body also mentioned that the national mustard harvest is going quite well and that it expects a record harvest in the current year, which could help relieve consumers.
Furthermore, the government has been very proactive in taking quick action to cool prices before the new mustard crop starts hitting the markets. The recent 2.5% reduction in import duties on crude palm oil (CPO) is a good example.
“This small Holi giveaway from our SEA members should help support our consumers and add color to the festivities,” added SEA.
According to data kept by the Ministry of Consumer Affairs, the average retail price of groundnut oil (packaged) was Rs 177.75 per kg on February 20, up from Rs 164.55 per kg a year ago. year.
Similarly, the retail price of mustard oil (packaged) was Rs 187.03 per kg on 20 February this year compared to Rs 145.02 per kg on the same day of 2021, while the retail price of soybean oil (packaged) was Rs 147.36 per kg as against Rs 126.03 per kg.
The retail price of sunflower oil was also high at 161.75 rupees per kg against 144.22 rupees per kg, while that of palm oil was 130.53 rupees per kg against 113.89 rupees per kg during the reporting period, according to the data.