Edible oil- Cut in the price of edible oils: The Union Food Ministry has asked companies producing edible oil to cut edible oil prices. This was done in view of the falling prices of edible oils on the international market. Oil companies say that due to lower international prices, prices have come down significantly and customers will benefit over the next week.
After meeting with Union Food Secretary Sudhanshu Pandey on Wednesday, oil companies will further lower the price of edible oils. The Food Secretary has told the companies that due to the shortage in the international market there is scope to reduce the price of edible oil by around Rs 10 per litre. Now, oil companies have said the price of edible oils could be further reduced in the coming days.
The advantage of low prices is not to reach customers, the
the government believes that the full benefit of the international price reduction is not reaching customers. For example, if government data is to be believed, then the average price of mustard oil where on June 20 was Rs 180 per litre, it was only Rs 180 on July 6.
Meanwhile, the average peanut oil price remained at ₹180 per litre, while the average palm oil price remained constant at ₹155. There has certainly been a reduction of ₹10 per liter in the average price of soybean oil.
However, at the meeting held on Wednesday, edible oil companies told the government that they had started passing on the benefit of the edible oil shortage to customers in the international market.
How much have international oil prices fallen?
According to sources, one oil company even said that in the last month they have reduced their mark by ₹35 per litre. The Association of Petroleum Companies says that if international prices fall further, there will be a further reduction in the retail price of edible oils.
Over the past year, for various reasons, the price of edible oils has increased in the international market.
The Ukrainian crisis has aggravated the situation, due to which their prices have increased because Ukraine is the largest producer and exporter of sunflower oil. Amid the Ukraine crisis, Indonesia banned the export of palm oil from here.
How much palm oil does India import?
India imports more than 60% of its palm oil needs. However, over the past month, there has been a sharp drop in international rates. Experts believe that there is no shortage of oil in the country.
Apart from this, there is a possibility of good cultivation of soybeans and other crops in different countries of the world including India, so the price of edible oils might continue to fall.
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