The Centre on Friday directed edible oil associations to further reduce the maximum retail price (MRP) of major edible oils by Rs 8-12 per litre with immediate effect.
"Some companies which have not reduced their prices and their MRP is higher than other brands have also been advised to reduce their prices," the food ministry said after a meeting, chaired by food secretary Sanjeev Chopra, with the industry representatives.
Price to distributors by the manufacturers and refiners also needs to be reduced with immediate effect so that the price drop is not diluted in any way, it said.
With the edible oil prices continuing to show a downward trend and set to witness further reduction by the edible oil industry, the ministry said, "The Indian consumers can expect to pay less for their edible oils. The falling edible oil prices will help in further cooling inflation fears if any."
Industry representatives including the Solvent Extraction Association of India and the Indian Vegetable Oil Producers' Association were present in the second meeting convened within a month to discuss further reduction in retail prices of edible oils amidst a continued fall in the global prices.
"The leading edible oil associations were advised to take up the issue with their members immediately and ensure that the maximum retail price (MRP) of major edible oils to be reduced further by Rs 8-12 per litre with immediate effect," the ministry said in a statement released after the meeting.
In the meeting, the ministry said the international prices of imported edible oils are continuing on a downward trend and therefore, the edible oil industry needs to ensure that the prices in the domestic market also drop commensurately.
Moreover, the industry asked the food ministry to inform regularly regarding any reduction in prices to distributors, as the department seeks to monitor the progress.
Furthermore, companies that have not yet reduced their prices and have higher MRPs compared to other brands were specifically advised to lower their prices to align with the prevailing market conditions, the ministry stated.
Earlier also the ministry had convened a meeting with the leading edible oil associations and over a month the MRP of refined sunflower oils and refined soybean oil of some major brands were decreased by Rs 5-15 per litre. A similar decrease has been done in the case of mustard oil and other edible oils as well.
The reduction in oil prices came in the wake of the reduction of international prices and reduced import duty on edible oils making them cheaper. The industry was then advised to ensure that the entire benefit of the reduced international prices be passed on to the consumers invariably, the ministry added.
Shares of Adani Wilmar Ltd ended at Rs 437.40, down by Rs 4.60, or 1.04 percent on the BSE. Also, shares of Patanjali Foods Ltd Ltd ended at Rs 1,031.70, down by Rs 6.95, or 0.67 percent on the BSE
