Wholesale prices of edible oils to be reduced by Rs 5 per kg: SEA

Amid no sign of further moderation in edible oil prices, industry body SEA on Monday said its members have decided to further reduce the wholesale prices of edible oils by Rs 3-5 per kg during this festival season to provide relief to consumers.

Due to government steps, there has already been a 21.59 per cent reduction in average retail prices of palm oil at Rs 132.98 per kg on October 31, from Rs 169.6 per kg on October 1, as per the data maintained by the consumer affairs ministry.

The average retail price of soya oil saw a marginal reduction to Rs 153 per kg from Rs 155.65 per kg in the said period.

However, average retail prices of groundnut oil, mustard oil and sunflower oil remained firm at Rs 181.97 per kg, Rs 184.99 per kg and Rs 168 per kg, respectively, on October 31, the ministry data showed.

To further give relief to consumers, the Solvent Extractors’ Association of India (SEA) said, “SEA members have decided to further reduce prices of edible oils by Rs 3,000 to Rs 5,000 per tonne keeping in mind the Diwali festivities.”

SEA members, even though they are saddled with high-duty paid stocks, are responding to the needs of consumers and bringing down the selling prices, it said in a statement.

To check prices, the government took several measures, including a sharp reduction in import duties in the second week of October, which helped control runaway prices and is now reflected in the domestic wholesale rates, it said.

After the duty cut, SEA said there was a 7-11 per cent reduction in wholesale prices of palm olein, refined soy and refined sunflower between October 10 and October 30.

“Even though international prices of all these edible oils have risen substantially, the duty reduction by the government has cushioned the impact for the consumers,” it said.

Domestic edible oil prices have shot up in tandem with the international market where rates have risen due to reduced availability of edible oils for food use following diversion for biofuel in Indonesia, Brazil and other countries.

India meets over 60 per cent of its edible oils demand through imports. Any rise in global prices has a direct impact on local prices.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor