Edible Oil Becomes Cheaper by Rs 15/Litre, Prices Still Higher Than Last Year

According to government data, the retail prices of five edible oils—mustard oil, vanaspati, soy oil, sunflower oil, and palm oil—have decreased by 2–8% over the previous month but are still 3–21% more than they were a year ago.

The Department of Consumer Affairs' statistics on the all-India Daily Weighted Average Prices of Major Edible Oils reveals that among the five edible oils, palm oil has experienced the largest decrease of 7.83 percent, dropping to Rs 143.81 per kg on Friday from Rs 156.02 per kg one month earlier. However, compared to Rs 131.09 per liter, the retail price of palm oil is still 9.70% higher.

Vanaspati retail prices have decreased by a minimum of 2.01 percent, falling from Rs 165.74 per kg one month ago to Rs 162.41 per kg on Friday. Vanaspati retail prices are 21.36 percent more than they were a year before (133.83 per kg).

Soybean oil's average retail price decreased somewhat on Friday from Rs 169.7 per kg to Rs 164.43 per kg, a 3.11 percent decrease. However, figures submitted by the State Civil Supplies Department of the individual state governments to the Department of Agriculture reveal that soya oil prices are 10.49% higher than Rs 148.82 per kg recorded on the same day last year.

On Friday, the retail price of sunflower oil dropped from Rs. 191.93 per kg to Rs. 185.6 per kg, a 3.30 percent decrease. However, compared to the same day last year, the retail price of sunflowers is still 12.31% higher.

The Department of Consumer Affairs' Price Monitoring Division keeps an eye on the costs of six edible oils. While the average retail costs for five different types of edible oils—mustard oil, vanaspati, soy oil, sunflower oil, and palm oil—have all somewhat decreased, the cost of groundnut oil is currently hanging at Rs 187.33 per kg, which is 4.75 percent more expensive than it was a year ago.

The Center has urged the edible oil companies to lower their MRP by Rs 15 per kg because consumers have not yet received relief from the higher prices for edible oil.

The Ministry of Consumer Affairs, Food, and Public Distribution stated on Friday stating that "the Department of Food and Public Distribution in a meeting on July 6^th, 2022 directed leading Edible Oil Associations to ensure reduction in the MRP of edible oils by Rs. 15/- with immediate effect."

The Center further recommended that wholesalers' prices be quickly decreased by manufacturers and refiners to prevent any dilution of the price drop.

"During the conference, it was discussed that the price of imported edible oils is declining on a global scale, which is a very beneficial development for the edible oil market. As a result, the local edible oil sector must make sure that domestic market prices are falling proportionately. And consumers must quickly benefit from this price reduction without being delayed in any way. The meeting also covered other topics, such as price data collection, control orders on edible oils, and edible oil packaging, according to the statement.