The central government has urged companies to lower the price of cooking oil in India. Thankfully, these companies have agreed to the request, indicating that prices may soon fall. India is a major edible oil importer, having bought Rs 1.57 lakh crore worth of oils during the 2021-22 financial year. The country purchases palm oil from Indonesia and Malaysia and soybean oil from Argentina and Brazil. Though the price of cooking oil has dropped slightly in the international market, it remains too high for most Indians. In response, the government has directed oil companies to reduce maximum retail prices to pass the savings on to consumers. Many companies have already reduced their prices, including Mother Dairy and Tara, who are dropping prices by Rs.15-20 per liter. New products with revised MRP are expected to hit the market soon. The Edible Oil Producers Association has backed the advisory, and other companies have vowed to follow suit, likely reducing the MRP by Rs.10 to Rs.20 per litre. While groundnut prices remain steady, the cost of sunflower oil, coconut oil, and ghee has fallen dramatically.
Delhi: The central government has advised the companies to reduce the price of cooking oil. As the companies have also agreed to this, the price is likely to come down soon.
India, one of the major importers of edible oils in the world, imported edible oils worth Rs 1.57 lakh crore in the financial year 2021-22 (November-October).
India generally buys palm oil from Malaysia and Indonesia, while importing soybean oil from Argentina and Brazil.
In this case, the price of cooking oil has decreased slightly in the international market, but it is still not accessible to the people. In order to provide relief to the public from the price hike, the central government has advised that the companies producing cooking oil should take steps to reduce the price of cooking oil domestically in accordance with the international conditions.
The price of edible oils in the international market has decreased by $200 to $250 per ton. The central government has directed the companies to immediately take necessary steps to reduce the maximum retail price (MRP) of cooking oil so as to pass its benefits directly to the consumers.
In response to this, most of the companies have reduced the Maximum Retail Price (MRP) on cooking oils in the last few months. In this case, now Mother Dairy and Tara brand have announced to reduce the price by Rs.15-20 per liter.
Products with revised MRP are said to hit the market next week.
The Edible Oil Producers Association (SEA) has also advised on price reduction following the central government’s advisory.
Accepting this, the oil producing companies have also decided to reduce the cooking oil MRP soon.
In the last one year, the price of groundnut has not decreased much. But the price of all types of edible oils including sunflower oil, coconut oil and ghee has come down significantly.
It is also reported that all the leading oil companies of India are going to reduce the price of cooking oil by Rs.10 to Rs.20 per litre.