Steep edible oil prices fall over past few months – Times of India


NEW DELHI: Prices of all major edible oils have fallen by Rs 15-25 per litre in the past four months, according to government data. The prices may reduce further as a major producer on Monday announced a significant cut in the prices and said stocks with new prices will soon reach the market.
The reduction in prices can be attributed to a fall in international prices of edible oil and steps taken by the government, including import duty cuts. The modal prices — the most prevalent price across centres — which the consumer affairs ministry uploads on its website, show that the price of mustard oil has come down by Rs 15 in the past one month.
Similarly, the price of sunflower and palm oil have fallen by Rs 17 and Rs 15 per litre respectively during this period.
Data show that the landing prices of imported palm oil in Mumbai has fallen from $1,720 per tonne to $1,010 in the past 45 days. Similarly, the price of sunflower oil has come down to $1,600 per tonne from $2,050 a month-and-a-half ago.
As a result, the domestic wholesale prices of all imported edible oils have fallen significantly. This also has a positive impact on the prices of mustard oil in the country. The government said the falling edible oil prices will help in cooling inflation as well.
India is one of the largest importers of edible oils in the world. During 2020-21, it imported around 133 lakh tonnes of edible oils costing around Rs 80,000 crore. Out of all the imported edible oils, the share of palm oil is about 56%, followed by soybean oil at 27%, and sunflower at 16%, according to the government. Hence, any fluctuation in the international market impacts the domestic prices of all edible oils.
Announcing the major price cut on Monday, Adani Wilmar, the largest edible oil producer in the country, said the new price of soybean oil will be Rs 165 a litre compared to the current rate of Rs 195. Similarly, the price of palm oil will reduce by Rs 26 a litre to Rs 144. It also announced price reduction across all its edible oils.
Meanwhile, the government said in the past few years there has been a steep increase in the domestic oilseed production — from 252.5 lakh tonnes in 2015-16 to 385 lakh tonnes during the year 2021-22 as per 3rd advance estimates released by the agriculture ministry.
The government has launched the Edible Oil Mission on Palm oil — National Mission on Edible Oils — Oil Palm (NMEO-OP) — as a new centrally sponsored scheme with a special focus on the northeast region and Andaman and Nicobar islands to push production.

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