Edible oil prices declined due to Centre's interventions, says Food Ministry

Major edible oils players including Adani Willmar and Ruchi industries have cut wholesale prices by Rs. 4 -7 per litre. The government claims that prices have been reduced to give relief to consumers during the festival season.

New Delhi:The pro-active involvement of Central and State Governments has led to reduction in the prices of edible oils across the country, said a statement issued by the Ministry of Consumer Affairs, Food & Public Distribution on Friday.

The Ministry said the government has cut the basic duty on Crude Palm Oil, Crude Soyabean Oil, and Crude Sunflower oil from 2.5% to nil in a bid to reign in a continuous rise in the cooking oil prices since the past year. The Agri-cess on these oils has been brought down from 20% to 7.5% for Crude Palm Oil and 5% for Crude Soyabean Oil and Crude Sunflower Oil, it said.

"Consequent upon the above reduction, the total duty is 7.5 per cent for Crude Palm Oil and 5 per cent for Crude Soyabean Oil and Crude Sunflower Oil. The basic duty on RBD Palmolein Oil, Refined Soyabean, and Refined Sunflower Oil has been slashed to 17.5 per cent from the current 32.5 per cent," the Ministry said.

"Before reduction, the agricultural infrastructure cess on all forms of Crude Edible Oils was 20 per cent. Post reduction, the effective duty on Crude Palm Oil will be 8.25 per cent, Crude Soyabean Oil and Crude Sunflower Oil will be 5.5 per cent each," it said.

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The Ministry said that to control prices of edible oils, the government has rationalised import duties on palm oil, sunflower oil, and soyabean oil, futures trading in mustard oil on NCDEX has been suspended and stock limits have been imposed.

"Major edible oils players including Adani Willmar and Ruchi industries have cut wholesale prices by Rs. 4 -7 Per Ltr. Prices have been reduced to give relief to consumers during the festival season," it said.

The other players that have reduced the wholesale prices of edible oils are Gemini Edibles & Fats India, Hyderabad, Modi Naturals, Delhi, Gokul Re-foils and Solvent, Vijay Solvex, Gokul Agro Resources, and N.K Proteins, the ministry said.

The ministry further said that the edible prices are higher than year ago period but from October onwards there was a declining trend. The government is taking steps to improve the production of secondary edible oils, especially rice bran oil to reduce import dependence.