The Solvent Extractors’ Association of India (SEA) has asked its members to reduce the maximum retail price (MRP) on edible oils by ₹3,000 to ₹5,000 a tonne with immediate effect as a Holi gift to consumers. This reduction would work out to ₹3-5 a kg.
In a statement, Atul Chaturvedi, SEA President, said members of the association, though struggling to maintain a smooth supply chain of edible oils, are aligned to the proactive decisions of the Government. SEA has requested and advised its members to reduce the MRP on edible oils with immediate effect to soften prices.
“This small Holi gift from our members should provide succour to our consumers and add some colour to the festivities,” he said.
This is the third time in four months that the association has asked its members to cut prices. Earlier, before Diwali in November, and later in December, the association had asked its members to reduce cooking oil pricest.
Stating that edible oil prices are skyrocketing globally, and this ‘imported inflation’ is not only giving sleepless nights to all stakeholders, but also to hapless Indian consumers. He added that the prices show no immediate signs of moderating. Some exporting countries such as Indonesia have started regulating exports of palm oil by way of licensing.
He said the tension in the Black Sea region between Russia and Ukraine has added fuel to the fire, with respect to the sunflower oil complex which comes from that region. Inclement weather in Brazil on account of La Niña has also reduced the soya crop drastically in Latin America.
“In this scenario, what is heartening to note is that the domestic mustard crop is shaping up quite well and we are expecting an all-time record crop during the current year, which may bring some relief to consumers,” he said.
The Centre has also been very proactive in taking prompt measures to cool down prices before the new mustard crop hits the market yards. The recent reduction in import duty on crude palm oil by 2.5 per cent is a case in point, he said.