Saturday, 28 January 2023

Edible oil prices reduced by 8-10 per kg in the last 30 days may drop further

Edible oil prices reduced by Rs 8-10 per kg in the last 30 days may drop further

Edible oil prices reduced by Rs 8-10 per kg in last one month mainly on the back of lower import duty and may fall by Rs 3-4 per kg in coming months on the higher domestic output of oilseeds and drop trend in global markets, according to SEA an industry body.

Atul Chaturvedi, President of Solvent Extractors' Association of India (SEA), said in a statement.

"The last few months have been trouble for the Indian edible oil consumer largely on account of high international prices of all oils viz palm, soya, and sunflower,"

SEA had suggested its members before Diwali to reduce prices to the maximum stretch possible, he said, adding that the Central government also reduced import duties on edible oils.

Chaturvedi said.

"We are happy to confirm all the actions have resulted in edible oil prices coming down by about Rs 8-10 per kg in the last 30 days,"

 SEA said its members have been responding quickly in passing on the benefit of lower prices to the consumers in India.

The SEA president said.

"With likelihood of lower import equally, our members have agreed to pass on the lower cost to our consumers as seasons greetings. We feel the prices would be decreased by around Rs 3-4 per kg in near future by our members. This should give relief to our edible oil consumers during festive season,"

Edible oil prices reduced by 8 10 per kg in the last 30 days may drop further 1pixabay image

Read More: Govt removes Agri cess and cut import duty on edible oils till March 2022

Chaturvedi said the edible oil price would now remain in inspect with a large soybean crop of around 120 lac tonne and groundnut crop over 80 lac tonne.

He added.

"The icing on a cake is that high mustard seed prices have extract a masupply-sidey side response from farmers and they have planted an all-time high mustard crop in 77.62 lakh hectares. This figure is higher by almost 30 percent and has the potential of increasing domestic mustard oil availability by 8 to 10 lakh tonnes in the coming year,"

Chaturvedi said the global trend of edible oil prices is "relatively bearish and we feel prices would continue to move downward." According to SEA, India's dependence on imported edible oils is nearly 65 percent of the total consumption of about 22-22.5 million tonnes. The country imports 13-15 million tonnes to bridge the demand and domestic supply.

For the last two marketing years (November to October), import has reduced to nearly 13 million tonne due to the pandemic. "In 2019-20 the import dropped to 13.2 million tonnes valued about Rs 71,600 crore. In 2020-21, India imported similar quantity but import bill jumped by 63 per cent and touched an alarming level of Rs 1.17 lakh crore due to hike in international prices of edible oils," SEA had said last month.

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