Centre Directs Industry Associations to Reduce Maximum Retail Price of Major Edible Oils in Line with Global Market
In a recent meeting chaired by food secretary Sanjeev Chopra, the Indian government directed edible oil associations to promptly lower the maximum retail price (MRP) of major edible oils by Rs 8-12 per litre, aligning with the downward trend witnessed in the global market. The move aims to benefit consumers by ensuring a fair and affordable pricing structure for essential cooking oils.
The Ministry of Food, highlighting the importance of competitive pricing, emphasized the need for companies to reduce their MRP if they had not already done so. This directive applies especially to brands that currently have higher prices compared to their counterparts. By taking immediate action to reduce prices, manufacturers and refiners are expected to prevent any dilution of the price drop to distributors.
To ensure transparency and consumer welfare, the ministry further stressed that any reduction in price to distributors by manufacturers or refiners must be promptly communicated, ensuring that the benefits are passed on to end consumers. This measure is crucial in maintaining a robust system that supports fair pricing practices.
With the continuous decline in edible oil prices globally, the Indian government assures consumers that they can expect reduced prices for their cooking oils. This significant drop in edible oil prices not only benefits consumers’ pockets but also contributes to cooling inflationary concerns, should they arise.
The second meeting, convened within a month, saw the participation of industry representatives, including the Solvent Extraction Association of India and Indian Vegetable Oil Producers’ Association. The purpose of this meeting was to discuss the ongoing fall in global prices and explore strategies to further reduce retail prices of edible oils in the domestic market.
During the meeting, it was noted that international prices of imported edible oils continue to trend downward. Consequently, the edible oil industry in India must ensure that these global price reductions are swiftly and adequately reflected in the domestic market. It was emphasized that the price drop should be expeditiously passed on to end consumers, eliminating any delays in its implementation.
“The leading edible oil associations have been advised to promptly engage with their members and facilitate an immediate reduction of the maximum retail price (MRP) of major edible oils by Rs 8-12 per litre,” stated the ministry in a released statement.
These progressive measures undertaken by the Indian government, in coordination with the edible oil industry, are expected to bring relief to consumers by reducing the financial burden associated with essential cooking oils. By aligning domestic prices with the global market, India’s edible oil industry demonstrates its commitment to consumer-centric practices and encourages a sustainable and competitive market environment.
