An industry-wide move from edible oil companies is set to provide huge relief to households after months of exorbitant price rise.
The new year is set to bring much needed monetary relief for households throughout the country. Major edible oil makers have decided slashed the maximum retail price (MRP) of their products by 10-15%, industry body Solvent Extractor’s Association of India (SEA) reportedly said earlier this week.
The move comes after the government cut import duty of edible oils due to the global price rise of the commodity. The centre had also directed the states to work towards bringing edible oil prices down.
As per SEA, this includes major companies like Ruchi Soya (Mahakosh, Sunrich, Ruchi Gold and Nutrella brands) and Adani Wilmar (on Fortune brands), Bunge (Dalda, Gagan, Chambal brands), Gemini (Freedom sunflower oil brands), COFCO (Nutrilive brands), Emami (Healthy & Tasty brands), Gokul Agro (Vitalife, Mahek and Zaika brands) and Frigorifico Allana (Sunny brands) among others.
The government brought down the basic customs duty on crude palm oil, crude soya-bean oil and crude sunflower seed oil from 2.5% to zero.
Cuts in Agriculture cess from earlier 20% to 5% on both crude sunflower oil and crude soya-bean oil, and to 7.5% for crude palm oil have also contributed to the recent price cuts. These changes will be effective from Thursday (December 30) till the end of March 2022.
In a meeting with industry’s leading stakeholders a few days ago, the Union Food Secretary Sudhanshu Pandey had urged a positive response after the announcement of import duty cuts.
Edible oil prices to further come down in the new year?
As per the industry body, an expected large domestic mustard crop and soothing for international prices in the next few months could bring more relief to the consumer in the new year. In the latest import duty cut, the government reduced basic basic customs duty on refined palm oil from 17.5% to 12.5%, up until end of March 2022.
Traders have been permitted to import refined palm oil without licence for another year till December 2022 in aa bid to boost supplies. A ban has also been imposed on launch of new derivative contracts of some agricultural commodities including crude palm oil.
India is heavily dependent on import to meet its edible oil needs amounting to 13-15 million tons or almost 65% of the total consumption volume of 22-22.5 million tons, the industry body said.
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 "Good news! Cooked food to cost less in 2022, here's how")
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