Edible oil producers ready to cut prices with the global trend

Edible oil manufacturers, including Adani Wilmar, Emami Agrotech, and Ruchi Soya, on Thursday, “In principle agreed to cut prices further” in a meeting with the food ministry officials here, sources said. Landed prices of these items have seen a steady fall in recent weeks. Since May, the global price of palm oil has been declining after Indonesia, the biggest exporter of the item, removed a ban on shipment.

According to data by the Solvent Extractors Association of India, landed prices of palm oil, which has a share of more than 56% in India’s import basket, fell by more than 14% to $1,080 a tonne on July 29, from the level a month ago. Similarly, soya bean and sunflower oil prices have dropped by 4% and 14%, respectively, to $1,460/tonne and $1,550/tonne, respectively, in the last month.

Last month, the department of food and public distribution, in a meeting with edible oil makers and trade associations, had asked companies to reduce prices by at least Rs 15 a liter in view of a softening of global prices. In May, the ministry convened the first meeting of leading edible oil makers and trade bodies and consequently, many companies announced a reduction in retail prices of edible oil.

According to data from the department of consumer affairs, modal retail prices of edible oils such as mustard, soya, sunflower, and palm oil have declined in the range of 5-12% in the domestic market since June 1.“Indian consumers can expect to pay less for their edible oil and falling prices will help in cooling the inflation as well,” a food ministry statement had stated last month.

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