Govt. asks industry to cut edible oils MRP by ₹8-12 per litre as global prices drop

With the edible oil prices continuing to show a downward trend and set to witness further reduction by the edible oil industry, the Food Ministry said

The Centre on Friday directed edible oil associations to further reduce the maximum retail price (MRP) of major edible oils by ₹8-12 per litre with immediate effect, in line with the global market.

"Some companies which have not reduced their prices and their MRP is higher than other brands have also been advised to reduce their prices," the Food Ministry said after a meeting, chaired by food secretary Sanjeev Chopra, with the industry representatives.

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 said.

It was also impressed upon 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, it added.

With the edible oil prices continuing to show a downward trend and set to witness further reduction by the edible oil industry, the ministry said, "the Indian consumers can expect to pay less for their edible oils. The falling edible oil prices will help in further cooling inflation fears if any." Industry representatives including Solvent Extraction Association of India and Indian Vegetable Oil Producers' Association were present in the second meeting convened within a month to discuss further reduction in retail prices of edible oils amidst a continued fall in the global prices.

In the meeting, 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.