As domestic edible oil prices are showing no sign of going down in view of global developments, the Solvent Extractors Association of India (SEA) has appealed to its members to reduce the minimum retail price (MRP) of cooking oils by Rs 3-5 per kg with immediate effect in order to give relief to consumers.
For the second time, SEA has asked its members to cut MRP. Last time, it asked its members to reduce MRP on edible oils by Rs 3-5/kg around Diwali in November 2021.
More than 60% of India’s edible oil demand is met by imports, and the government has taken several steps in recent months, such as lowering import duties on palm oil and imposing stock limits, to keep domestic retail prices under control.
Despite these proactive efforts of the government, all-India average retail prices continue to be higher than the year-ago period’s. “These prices are showing no immediate signs of moderating, and some exporting countries like Indonesia have also started regulating exports of palm oil by way of licensing,” said SEA.
Global edible oil prices are rising steeply, and this “imported inflation” is not only giving sleepless nights to all stakeholders but also to the hapless Indian consumers, it said.
Further, tensions in the Black Sea region between Russia and Ukraine are adding fuel to the fire in the sunflower oil complex, which comes from that region. Inclement weather in Brazil on account of La Nina has also drastically reduced soya crops in Latin America.
Given this global situation, SEA said though its members are struggling to maintain a smooth supply chain of edible oils, they are aligned with the proactive decisions of the government. SEA said it has “requested and advised their 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 the prices.
The domestic mustard crop is shaping quite well and it is expecting a record crop during the current year, which may help in bringing some relief to consumers. Besides, the government has been very proactive in taking prompt measures to cool down the prices before the new mustard crop starts hitting the market yards.
The recent reduction in import duties on crude palm oil (CPO) by 2.5 per cent is a case in point. “This small Holi gift from our SEA members should help in providing help to our consumers and add some colour to the festivities,” SEA added.
According to the data maintained by the Consumer Affairs Ministry, the average retail price of groundnut oil (packaged) was ruling at Rs. 177.75 per kg on February 20, higher than Rs. 164.55 per kg in the year-ago period. Similarly, the retail price of mustard oil (packed) was Rs. 187.03 per kg on February 20 this year, compared to Rs. 145.02 per kg on the same day in 2021, and the retail price of soya oil (packed) was Rs. 147.36 per kg, compared to Rs. 126.03 per kg.The price of sunflower oil was also quoted high at Rs 161.75 per kg as against Rs 144.22 per kg, while that of palm oil was Rs 130.53 per kg as against Rs 113.89 per kg in the given period, the data showed.