Sliding edible oil prices: Traders’ body request govt to step in
The average wholesale price of mustard oil is hovering around Rs 1,050 per 10 kg, 31 per cent lower compared to the April-May average wholesale price of Rs 1,525, Shah stated in his letter dated April 22.
The state body of oil millers and oilseed traders has appealed to the Central government to step in to arrest the slide in retail prices of edible oils to protect the Indian oilseeds producers and reduce the country’s dependence on imports.
Sameer Shah, the president of Gujarat State Edible Oils and Oil Seeds Association (GSEOOSA), has written to Prime Minister Narendra Modi underlining the significant drop in prices of edible oils compared to the same period last year. He requested the government to take measures such as raising import duty and introducing quantitative import restrictions to stop the plunge in prices of edible oils.
The average wholesale price of mustard oil is hovering around Rs 1,050 per 10 kg, 31 per cent lower compared to the April-May average wholesale price of Rs 1,525, Shah stated in his letter dated April 22.
Similarly, palmolein oil price is down by 41 per cent and is trading at Rs 980 against Rs 1,575. Refined soybean oil is also trading 41 per cent lower at Rs 980 against Rs 1,650 last year. The highest drop of 45.95 per cent has been reported in the price of refined sunflower oil — from Rs 1,850 to Rs 1,000. Cottonseed oil, which is widely consumed in Gujarat, has also fallen from Rs 1,625 to Rs 1,010, a 39 per cent drop. Corn oil is trading at Rs 980 as compared to Rs 1,550, a slide of 37 per cent. Price of groundnut oil has fallen by six per cent and is trading at Rs 1,650 these days as compared to Rs 1,750.
“So, except groundnut oil (which accounts for only about 3 per cent of our total consumption), rates of all edible oils have come down drastically. As a result of this, rates of our domestically produced oil seeds like mustard/rapeseed and soybean are constantly trading below MSP in all mandis across the country,” Shah said. He added that all edible oils traders have incurred huge financial losses.
“The retail prices have recovered by an average of Rs 70 per kg over the past one week or so as the latest spell of unseasonal rains in the state is likely to delay the harvest of groundnut sown in summer,” an industry player said, adding, “The fact that mustard prices are not lifting despite government procuring this oilseed from farmers at minimum support price calls different approach to tackle the situation.”
India had drastically cut import duties on edible oils as commodity prices soared globally and Indonesia, one of the largest suppliers of edible oils to India, prohibited palm oil exports. The soft import policy continues and currently, imports of crude palm oil attract five per cent import duty. Similarly, refined, bleached and deodorised palm oil attract 12.5 per cent import duty.
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