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Industry association, SEA announced that its members have resolved to further decrease edible oil wholesale prices by Rs 3-5 per kg during this festive season to bring relief to consumers, despite no signs of further moderation in edible oil prices.
According to data collected by the consumer affairs ministry, average retail prices of palm oil had already fallen by 21.59% to Rs 132.98 per kg on October 31, down from Rs 169.6 per kg on October 1.
In the same period, the average retail price of soya oil fell marginally to Rs 153 per kg from Rs 155.65 per kg.
According to ministry data, average retail prices of groundnut oil, mustard oil, and sunflower oil were stable on October 31 at Rs 181.97 per kg, Rs 184.99 per kg, and Rs 168 per kg, respectively.
“SEA members have decided to further decrease prices of edible oils by Rs 3,000 to Rs 5,000 per tonne keeping in view the Diwali festivities,” according to the Solvent Extractors’ Association of India (SEA).
SEA members, while being burdened with high-duty-paid inventories, are responding to customer demands and lowering selling costs, according to a statement.
The government took numerous efforts to keep prices under control, including a significant cut in import tariffs in the second week of October, which helped stabilise runaway costs and is now reflected in domestic wholesale rates, according to the statement.
Between October 10 and October 30, SEA reported a 7-11% drop in wholesale pricing of palm olein, refined soy, and refined sunflower as a result of the tariff decrease.
“Even if overseas prices for all of these edible oils have risen significantly,” it stated, “the government’s duty decrease has buffered the blow for consumers.”
Domestic edible oil costs have risen in lockstep with worldwide rates, owing to a decrease in edible oil supply for food consumption as a result of biofuel diversion in Indonesia, Brazil, and other nations.
Imports account for more than 60% of India’s edible oil requirement. Any increase in global pricing directly affects local prices.