Cooking oil makers led by Adani, Ruchi cut MRP by 10-15%

Leading edible oil producers in the country, including Adani Wilmar, Ruchi Soya, Emami, Bunge, Gemini and Gokul Agro, have cut the maximum retail price (MRP) on edible oils by 10-15 per cent, the Solvent Extractors Association of India (SEA) has said.

A SEA statement said that the cut in the MRP followed a suggestion to its members to fix realistic prices consumers need to pay and disseminate the information to ensure retailers do not fleece “gullible” customers.

SEA asked its members to lower the MSP after the Ministry of Consumer Affairs, Food and Public Distribution Secretary Sudhanshu Pandey convened a meeting of the industry leaders a few days ago. During the meeting, he urged the leaders to respond “positively” to a reduction in import duties announced by the Centre.

SEA said the exorbitant price rise in edible oils during the last few months in view of a surge in global prices had “unnerved” consumers and policy makers, resulting in the Centre asking producers to fix realistic prices.

“We are hopeful the New Year will bring happier tidings for our consumers with expectations of a large domestic mustard crop coupled with softening international values in toming months,” SEA added.

Last week, SEA President Atul Chaturvedi quoted Pandey as saying that MRPs mentioned on consumer packs were not commensurate with the recent cuts in edible oil import duties. He said many consumers were paying the MRP despite the issue price of manufacturing companies being lower.

Chaturvedi asked the manufacturers to ensure that consumers were not fleeced by retailers since the Government was perturbed by edible oil prices still ruling high.

This is the second time that edible oil manufacturers have lowered the MRP. Ahead of Diwali, many edible oil firms had cut the MRP by ₹5-20 a kg.

With edible oils rising to new highs in the domestic market mainly since global prices increased on lower production and supply woes, the Centre initiated various measures to control the prices as part of its efforts to rein in inflation.

Duty cut

Last week, the Centre cut the basic customs duty on refined palm oil and RBD palmolein to 12.5 per cent from 17.5 per cent till March next, besides allowing import of these oils without any quantitative restrictions until December 31, 2022.

On October 13 this year, the Government cut the Customs duty on crude edible oils to zero and reduced the Agriculture Infrastructure and Development Cess on all oils to bring down the prices.

The Centre had lowered the import duties in June, too, this year to control edible oil prices.

COMMENT NOW