Despite government advisory, edible oil prices rise by up to Rs 22/litre
Despite the food department’s advisory to maintain prices during the festive season, edible oil prices have increased by Rs 8-22 per litre following the government’s import duty hike on soybean, sunflower, and palm oils on September 13. Mustard oil rose from Rs 141 to Rs 152 per litre, with palm oil climbing to Rs 122. The department had urged no price hikes until old stock was depleted, but industry associations noted a significant price rise, prompting the Solvent Extractors Association to request members to prioritize consumer interest.
Despite the food department’s advisory to edible oil industry associations to ensure no increase in prices during the festive season and the subsequent request of the associations to companies, the price of major oils have increased by Rs 8-22 per litre. The department had urged industry to maintain the prices considering that there is enough old stock imported at zero or less duty. Government data show that the prices of key edible oils have increased in the past two weeks after the Centre increased import duty on soyabean, sunflower and palm oil on September 13.
While the average price of mustard oil has increased from Rs 141 per litre to Rs 152 in the past two weeks, palm oil was selling at Rs 122 per litre on Wednesday compared to Rs 100 on September 12. In the case of soyabean and sunflower oil, the increase in retail price during this period was around Rs 9-10 per litre.Recently, taking note of abnormal rise in average prices, the food department had sought a “clarification” from the industry associations since it had urged industry not to increase the MRP till they exhaust the old stock that were imported at zero or less imported duty.
In a letter addressed to solvent extractors, vegetable and soyabean oil producer associations last week, the department had flagged how the industry had increased prices “drastically” since the announcement of import duty hike and despite government’s directions to maintain retail prices to maintain retail prices in the coming festival season. It said “there was no legitimate cause to increase domestic prices till the (old) stock exhausted”.Following the department’s missive, Solvent Extractors Association has urged its members “to be mindful of consumer interest and not allow prices to move up” considering the ensuing festive season.
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