Edible oil industry body SEA urges members to reduce retail prices
Jul 24, 2023
New Delhi [India], July 24 : The Solvent Extractors' Association of India, the apex industry body for edible oils, once again urged its members to reduce the retail and wholesale prices in line with prevailing global markets to benefit the consumers.
The food ministry and the leading edible oil industry representatives in India had a meeting in June to discuss a further reduction in the retail prices of edible oils amidst a continued fall in their global prices. It was the second meeting the Department of Food and Public Distribution convened within a month with the industry representatives.
“The government is seriously concerned about the domestic price of edible oil and expects a fall in prices in line with the declining international market. In recent virtual meetings with officials from the Department of Food & Public Distribution, we discussed the decrease in Edible Oil Prices in the country compared to the falling international prices. We have conveyed that major brands have already reduced the prices of edible oils over the last few months in alignment with the falling global market,” SEA President Ajay Jhunjhunwala wrote in a letter to its members on Monday.
“We urge all members to reduce Maximum Retail Price (MRP) and Price to Distributor (PTD) of Edible oils in line with the reducing international market scenario.”
Additionally, the edible oil industry body has requested the distributors to monitor retailers in their distribution network to ensure that the profit margins is also reduced along with the MRP.
India is the world's second-largest consumer and number one vegetable oil importer, and it meets 60 per cent of its need through imports. A large part of it is palm oil and its derivatives, which are imported from Indonesia and Malaysia.
India majorly consumes mustard, palm, soybean, and sunflower-derived edible oils.
Meanwhile, sowing of kharif oilseeds crops have started in India.
Sowing of oilseeds, comprising groundnut, soybean, sunflower, sesame, and others, was higher year-on-year at 160.41 lakh hectares, as against 155.29 lakh hectares same period last year, data put out by agriculture ministry showed on Monday.
“We are pleased to report that India's monsoon is performing relatively well, with most oilseed production areas receiving sufficient rain for sowing,” SEA President wrote in the letter to the members.
