Major Edible Oil Brands Cut MRP By 10-15% To Provide Relief To Consumers

The central government has reduced import tax on edible oil from 17.5 per cent to 12.5 per cent

New Delhi: Major edible oil brands have reduced their MRP by 10-15 per cent to provide relief to customers, industry body Solvent Extractors’ Association of India (SEA) has said in a statement.

Major edible oil companies, including Adani Wilmar and Ruchi Soya, have reduced the maximum retail price (MRP) of their products by 10-15 per cent to provide relief to consumers.

“We are happy to inform that our key members have reduced the MRP on edible oils marketed by them, across the board by 10-15 per cent to provide relief to consumers during the festival season,” SEA said in a statement.

The government has reduced the import tax from 17.5 per cent to 12.5 per cent.

The association said that excessive price rise in edible oils since the past few months because of high international prices was troubling the domestic consumers as well as the policymakers.

To rein in the prices of edible oils, earlier the government has reduced the import duty on both refined and crude edible oils several times this year.

Union Food Secretary Sudhanshu Pandey, to provide assistance to consumers, had called a meeting of industry leaders a few days ago and requested them to respond positively to the reduction in import duty.

The last reduction in import duty was done by the government on December 20 when the basic customs duty on refined palm oil was reduced from 17.5 per cent to 12.5 per cent till the end of March 2022.

To boost supply, the government has allowed traders to import unlicensed refined palm oil for one more year till December 2022 and markets regulator banned the launch of new derivative contracts for crude palm oil and some other agricultural commodities.

According to SEA, India’s dependence on imports of edible oils accounts for about 65 per cent of its total consumption of around 22-22.5 million tonnes. The country imports 13-15 million tonnes to bridge the gap between demand and domestic supply. For the past two marketing years (November to October), due to the pandemic, imported quantities declined to around 13 million tonnes.

Major edible oil brands that cut MRP

Major edible oil brands that slashed prices are Adani Wilmar (on Fortune brands), Bunge (Dalda, Gagan, Chambal brands), Ruchi Soya (Mahakosh, Sunrich, Ruchi Gold, and Nutrella brands), Emami (Healthy and Tasty brands) and Gemini (Freedom Sunflower oil brand). Frigorifico Allana (Sunny brand), COFCO (Nutrilive brand), Gokul Agro (Vitalife, Mahek and Zaika brands) and others have also slashed prices.