New Delhi, Feb 22: Amidst the ever-increasing inflation, there is going to be relief soon on the edible oil price front. Industry body Solvent Extractors Association of India-SEA has asked its members to decrease the maximum retail price (MRP) of edible oil.
This is the second time that industry body SEA has requested its members to cut MRP. Last time it had asked its members to reduce the MRP of edible oils by Rs 3-5 per kg around Diwali in November 2021.
India imports edible oil for more than 60 per cent of its edible oil requirements. India has taken various steps in the last few months like reducing import duty on palm oil and imposing stock limits to keep the retail prices of edible oils under check. Despite these proactive efforts of the government, the all-India average retail prices remain higher than the same period a year ago.
Solvent Extractors Association of India says that these prices do not show any immediate signs of softening. Some exporting countries like Indonesia have also started controlling the export of palm oil through licenses. Global edible oil prices are skyrocketing and this imported inflation is troubling not only all the stakeholders but also Indian consumers.
Tensions in the Black Sea region between Russia and Ukraine are adding to the fire for sunflower oil coming from that region. Bad weather in Brazil due to La Nia has also significantly reduced soy crops in Latin America. In view of this global situation, the members are struggling to maintain smooth supply of edible oils. They are associated with active decisions of the government.
The industry body said that the domestic mustard crop is much better. A record crop is expected during the current year. This can give some relief to the consumers. In addition, the government has been proactive in taking immediate steps to soften the prices before the new mustard crop hits the market. The recent 2.5 per cent reduction in import duty on crude palm oil (CPO) is an example.
Earlier, the organization made this appeal, saying that there is no sign of reduction in domestic edible oil prices due to global developments.
