Edible oils prices decline by Rs 5-20 per kg in retail market
Major edible oil players Adani Willmar & Ruchi Industries cut prices
New Delhi, Jan. 11 (Delhi Crown): Edible oils’ prices have declined in the range of Rs 5 and 20 per kg in major retail markets, after the basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil have been cut from 2.5% to Nil, said the Centre Government on Tuesday.
The Agri-cess on these Oils has also been brought down from 20% to 7.5% for Crude Palm Oil and 5% for Crude Soyabean Oil and Crude Sunflower Oil, said an official statement issued by the Ministry of Consumer Affairs, Food & Public Distribution.
The prices of edible oils in the country have been very high for the past one year. “This has been a major cause of concern for the Government. In order to rein in the prices and provide relief to the consumers who are reeling under unprecedented inflationary circumstances, the government has taken a number of steps,” added the statement.
Consequent upon the above reduction, the total duty is now 7.5% for Crude Palm Oil and 5% for Crude Soyabean Oil and Crude Sunflower Oil. The basic duty on RBD Palmolein Oil has been slashed to 12.5% from 17.5% recently.
The basic duty on Refined Soyabean and Refined Sunflower Oil has been slashed to 17.5% from the current 32.5%. Before reduction, the agricultural infrastructure cess on all forms of Crude Edible Oils was 20%. Post reduction, the effective duty on Crude Palm Oil will be 8.25%, Crude Soyabean Oil and Crude Sunflower Oil will be 5.5% each.
Apart from rationalizing import duties on palm oil, sunflower oil and soyabean oil, futures trading in mustard oil on NCDEX has been suspended and stock limits on oils and oilseeds have been imposed. Despite international commodity prices being high, interventions made by Central Government along with State Governments’ pro-active involvement have led to reduction in prices of edible oils. Edible oil prices are higher than a year ago period but from October onwards there is a declining trend.
Further, the government is taking steps to improve the production of secondary edible oils, especially rice bran oil to reduce the import dependence.
The department is regularly interacting with the oil industry associations and leading market players and has convinced them to reduce the MRP which will translate to passing on the benefit of duty reduction to end consumers.
“As per the trend from 167 price collection centers, edible oil prices have declined quite significantly in the range of Rs 5 and 20 per kg in the major retail markets across the country,” claimed the statement.
It further stated – “Major edible Oil players including Adani Willmar and Ruchi Industries have cut prices by Rs. 15 -20 Per Ltr. The other players that have reduced the prices of edible oils are Gemini Edibles & Fats India, Hyderabad, Modi Naturals, Delhi, Gokul Re-foils and Solvent, Vijay Solvex, Gokul Agro Resources and N.K. Proteins.”