Edible oil prices to dip on back of bumper production

The prices of edible oil are set to dip on the back of good domestic production. Meanwhile, in response to an appeal by Atul Chaturvedi, the president of Solvent and Extractors’ Association of India (SEA), member companies have started to reduce the prices of edible oil.

The spiralling cost of edible oil in the last few months has burnt a hole in the pockets of Indian consumers. The country, which is heavily dependent on imports, suffered owing to the drop in edible oil production in Argentina and Brazil. The reduction in palm oil production in Malaysia and Indonesia also affected the Indian market. Moreover, the shortage of vessels to transport oil contributed to the spike in prices. The Union government had to step in multiple times since February to control the prices of the commodity. The Centre even completely waived off custom duty on imported edible oil to temper the prices.

A statement issued by the SEA read: “Many key players including M/s Adani Wilmar Ltd, Ahmedabad, Ruchi Soya Industries Ltd, Indore, M/s Gemini Edibles & Fats India Pvt Ltd, Hyderabad, M/s Modi Naturals Ltd, Delhi, M/s. Gokul Refoils and Solvent Limited, Sidhpur, M/s Vijay Solvex Ltd, Alwar, M/s. Gokul Agro Resources Ltd, Ahmedabad, NK Proteins Pvt Ltd, Ahmedabad, have already committed and reduced wholesale bulk prices by Rs 4,000 Rs 7,000 per ton (Rs 4-Rs 7 per litre) and others are also following to reduce the edible oil prices .”

While speaking to indianexpress.com, Chaturvedi said that they expect a bumper crop of soybean and groundnut to hit the markets soon. “Also, mustard crop production this time is expected to be 25-30% higher than normal, so we expect the prices soften,” he said.

At present, most edible oils are retailing between Rs 180-200 per litre, which is Rs 30-50 higher than last year’s rate.

Indianexpress.com

Tags: vegetable oils, prices, India