Govt Orders Edible Oil Companies To Reduce Price By Upto Rs 10-Rs 15 Per Litre

Govt Orders Edible Oil Companies To Reduce Price By Upto Rs 10-Rs 15 Per Litre
Govt Orders Edible Oil Companies To Reduce Price By Upto Rs 10-Rs 15 Per Litre

The government has directed edible oil manufacturers to further cut the MRP of imported cooking oils by up to Rs 10 per liter by next week, amid a fall in global prices.

The manufacturers also have to maintain a uniform MRP of the same brand of oil across the country.

Price drop

India imports more than 60 per cent of its edible oil requirement.

As a result retail prices faced pressure in the last few months following trends in the global market.

However now there has been a correction, resulting in a fall in global prices.

Surplus stock and the consecutive low demand are also behind the price drop.

Edible oil prices to drop

Edible oil makers had cut prices by up to Rs 10-15 per liter last month and prior to that had also reduced the MRP taking cues from the global market.

Taking note of a further drop in global prices, Food Secretary Sudhanshu Pandey convened a meeting of all edible oil associations and major manufacturers to discuss the current trend.

They have been asked to pass on the falling global prices to consumers by reducing the MRP.

Pandey said that the government made a detailed presentation and told the edible oil makers that global prices have declined by 10 per cent in last one week alone

Hence this should be passed on to consumers by reducing the MRP.

Government interventions

He said that the price drop has been possible due to constant monitoring by the department, constant engagement with all stakeholders and multiple interventions by the government such as reducing the import duty on edible oils making them cheaper.

In a bid to control the continuous rise in prices the Centre had earlier cut the basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil from 2.5per cent to Nil.

Earlier, the central government extended the free import of Refined Palm Oils till the end of this year.

Major brands

The MRP of Fortune Refined Sunflower Oil 1 litre pack has been decreased to Rs. 210 from Rs. 220. 

The MRP of Soyabean (Fortune) and Kachi Ghani oil’s 1-litre pack have reduced from Rs. 205 to Rs. 195.

Maintaining uniformity

The Secretary also asked the manufacturers to maintain a uniform MRP of the same brands of cooking oils across the country.

He noted that currently there is a difference of Rs 3-5 per litre of same brands sold in different zones.

There shouldn’t be any variation when transportation and other costs are already factored in the MRP.

Unfair trade practices

The third issue discussed was mounting consumer complaints against edible oil brands voer unfair trade practices

Some companies were found to be writing on the package that edible oil is packed at 15 degrees celsius when ideally, they should be packed at 30 degrees celsius.

At 15 degrees celsius oil expands and weight gets reduced, which is not mentioned on the package, making it an unfair trade practice.

For instance, the companies state that edible oil of 910 gram is packed at 15 degrees celsius.

But the actual weight would be less at 900 gram.

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