Slight decline in edible oil prices but still higher than last year

The minimum decline of 2.01 per cent has been recorded in the retail prices of vanaspati, which has come down from Rs 165.74 per kg a month ago to Rs 162.41 per kg on Friday. In fact, retail prices of vanaspati are 21.36 per cent higher than their level (133.83 per kg) a year ago.

The average retail price of soya oil slightly came down to Rs 164.43 per kg on Friday, from Rs 169.7 per kg a month ago — a 3.11 per cent decline. However, soya oil prices are 10.49 per cent higher than Rs 148.82 per kg recorded on the same day last year, show the data reported by the State Civil Supplies Department of the respective state governments to the Department of Consumer Affairs.

The retail prices of sunflower oil declined by 3.30 per cent to Rs 185.6 per kg on Friday, while compared to Rs 191.93 per kg a month ago. However, the retail price of sunflower is still 12.31 per cent higher than the same day last year.

The Price Monitoring Division of the Department of Consumer Affair, monitors the prices of six edible oils. While the average retail prices of five edible oils – mustard oil, vanaspati, soya oil, sunflower oil and palm oil – have seen a slight dip, the prices of groundnut oil are hovering at Rs 187.33 per kg and are 4.75 per cent higher than their last year’s level.

With consumers yet to get respite from the higher edible oil prices, the Centre has asked the edible oil companies to reduce their MRP by Rs 15 per kg.

“The Department of Food and Public Distribution in a meeting on July 6th 2022 directed leading Edible Oil Associations to ensure reduction in the MRP of edible oils by Rs. 15/- with immediate effect,” the Ministry of Consumer Affairs, Food and Public Distribution said in a statement on Friday.

“The Centre also advised that the price to distributors by the manufacturers and refiners also needs to be reduced immediately so that the price drop is not diluted in any way.”

“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 Department may be kept informed on regular basis. 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 statement said.

“During the meeting it was discussed that the international prices of imported edible oils are on a downward trend which is a very positive picture in the edible oil scenario and, therefore, the domestic edible oil industry needs to ensure that the prices in the domestic market also drop commensurately. And, this price drop has to be passed on expeditiously to consumers without in a laggard fashion. Other issues like price data collection, Control Order on edible oils and packaging of edible oils were also discussed in this meeting,” it said.

According to the statement, the edible oil prices in the international market are witnessing a “dramatic fall”, however, the situation in the domestic market is “slightly different as the fall in the prices are gradual.”

“The Government of India stepped in and a meeting was convened by the Department of Food and Public Distribution with the leading industry representatives including SEAI, IVPA and SOPA to discuss reduction in the retail prices of cooking oils amid a fall in the global prices. The industry informed that the global prices of different edible oils have fallen by USD 300-450 per tones in the last one month, but it takes time to reflect in the retail markets and the retail prices are expected to come down in the coming days,” the statement said.