Centre directs edible oil associations to reduce prices by Rs 15/litre

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The Centre in a July 6 meeting directed leading edible oil associations to cut prices of edible oils by Rs 15 per litre with immediate effect, following the recent easing of imported edible oil prices.

“The Centre also advised that the price to distributors by the manufacturers and refiners also needs to be reduced immediately so that the price drop is not diluted in any way,” according to a statement by the Department of Food and Public Distribution. “It was also impressed upon that whenever a reduction in price to distributors is made by the manufactures/refiners, the benefit should be passed on to the consumers by the industry.”

Moreover, some companies that have not reduced their prices and whose prices are higher than other brands have been advised to slash them, the government said.

Other issues like price data collection, Control Order on edible oils and packaging of oils were also discussed at the meeting, it added.

In May, the Centre scrapped import duty on certain shipments of edible oils to lower prices and had advised the industry pass on the complete benefit to the consumers.

Last month, many edible oil firms has also reduced their prices by Rs 10-15 per litre.

A spike in food and fuel costs has pushed India’s retail inflation higher in recent months, leading to monetary tightening by the central bank. India imports more than 60 percent of its edible oil requirement.

Mother Dairy said July 7 it has cut the prices of soyabean and rice bran oils by up to Rs 14 per litre.