The Indian government has directed the edible oil industry to cut the maximum retail price (MRP) of their products with immediate effect to pass on the benefit of a sharp decline in global prices to the Indian household.
Nearly all companies have reduced their MRPs on edible oils in the past few months, and Mother Dairy, which sells Dhara brand oils, announced a cut of Rs 15-20 per litre across variants, and its products with revised MRPs will hit the market next week.
Undoubtedly, following an advisory by the Solvent Extraction Association of India (SEA), companies will reduce prices shortly. Chairing a meeting on the prices of edible oils, which was attended by representatives of SEA and the Indian Vegetable Oil Producers’ Association (IVPA), Union food secretary Sanjeev Chopra said the decline in prices of edible oils should be passed on to consumers “expeditiously”.
The ministry likewise advised the industry that the price to distributors (PTD) by the manufacturers and refiners also needs to be reduced with immediate effect so that the price decline is not diluted in any way.
The industry representatives said that the global prices of different edible oils have fallen by $200–250 per tonne in the last two months, but it takes time to reflect in the retail markets, and the retail prices are expected to come down shortly.
The government has advised the industry bodies to take up the issue with their members immediately and ensure that the MRP of each oil is reduced in line with the decline in the international prices of edible oils.