Relief For Households As Cooking Oil Prices Decline Sharply
Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.
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By Linus Garg
First publised on 2023-05-05 07:33:53
About the Author
Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.
View all posts by this Author
The price of edible oils has fallen drastically in the world market. The reduction is as much as $200-250 per tonne, meaning Rs 16.5 to Rs 20.5 per kg. The Centre has noted this and has asked domestic manufacturers to reduce their prices in line with the global decline and pass on the benefit to the consumers with immediate effect. At least one company, Mother Dairy, that markets the popular Dhara brand of edible oils, has reduced the MRP of its products by Rs 15-20 across variants. Others have also started reducing their prices.
The Union food secretary Sanjeev Chopra held a meeting with the Solvent Extraction Association of India (SEA) and the representatives of the Indian Vegetable Oil Producers' Association (IVPA) and impressed upon them that the benefit of the decline in global prices must be passed on to the consumers. The government wanted the companies to reduce the price to distributors as well as the MRP so that there was no dilution in passing on the benefit in this regard. This will also reduce food inflation further.
After the pandemic, the sharp rise in commodity prices, including edible oil prices, due to supply chain disruptions, had resulted in a sharp rise in MRP of the daily essential in India. Prices had jumped by more than 50% for some variants while the average rise for poplular variants was more than 25%. Households were feeling the pinch as the prices of other essentials like atta and maida had also skyrocketed. With the decline in global prices and the market trend, it is expected that prices will drop further. The government needs to keep a close watch to ensure the benefit is passed on to the consumers. The elevated price of edible oils had also forced restaurants to hike their prices. They should also reduce the same now.
