Edible oil associations asked to cut prices by Rs 15 immediately

The Narendra Modi government on Friday said that after a meeting held on July 6 leading edible oil associations were directed to cut prices by Rs 15 with immediate effect.

The Centre advised that the price to distributors by the manufacturers and refiners also needs to be reduced immediately so that the price drop is not diluted in any way.

"Some companies that have not reduced their prices and their MRP is higher than other brands. They have been advised to reduce prices," the food ministry said in a statement.

Twitter likely to legally challenge government over new IT rules

"During the meeting, it was discussed that the international prices of imported edible oils are on a downward trend, which is a very positive picture in the edible oil scenario. Therefore, the domestic edible oil industry needs to ensure that the prices in the domestic market also drop commensurately," it added.

Also, other issues like price data collection, control order on edible oils, and packaging of edible oils were discussed in this meeting.

Also Read: Former finance secretary doesn't expect new windfall tax to go away anytime soon

"The edible oil prices in the international market are witnessing a dramatic fall, however, the situation in the domestic market is slightly different as the fall in the prices is gradual. The government stepped in and a meeting was convened by the department of food and public distribution with the leading industry representatives including SEAI, IVPA and SOPA to discuss a reduction in the retail prices of cooking oils amid a fall in the global prices," it said.

The industry informed the government that the global prices of different edible oils have fallen by $300-450 per tonne in the last month, but it takes time to reflect in the retail markets and the retail prices are expected to come down in the coming days.

"The department is continuously monitoring the prices and availability situation of edible oil in the country and it is imperative that the benefit of reduced duty structure on edible oils and the continuous significant drop in prices at the international market be immediately passed on to the end consumers without fail. The consumers can look forward to saving some extra money in their kitchen budget," the food ministry added.

Also Read: An example of how the US sanctions on Russia may not be working as well as Biden wants to