Mother Dairy, Adani Wilmar, Other Firms Slash Prices Of Cooking Oils By Up To Rs 20 Per Litre

The move comes after the Centre asked edible oil companies to cut the prices of cooking oils in line with the fall in global prices for the benefit of consumers.

Several cooking oil companies have announced price cuts following the Centre's direction to the edible oil industry body SEA in line with the fall in global prices for the benefit of consumers.

On Thursday, Mother Dairy reduced the maximum retail prices (MRP) of its Dhara brand edible oils by Rs 15-20 per litre, effective immediately. Adani Wilmar, the maker of Fortune oil, has also slashed the prices of its soyabean oil (one litre pouch) to Rs 140 from Rs 145 in April. 

According to a report in PTI, Food Secretary Sanjeev Chopra has directed the edible oil industry body Solvent Extractors' Association of India (SEA) to lower prices of cooking oils due to the significant decline in global palm, soybean, and sunflower oil prices as well as a surplus of domestic oilseeds such as mustard, groundnut, and soybean. 

The Food Ministry has requested information from retailers on the extent to which they have reduced their maximum retail prices in the past three months.

In a statement on Thursday, Mother Dairy said the new stock with reduced prices would hit the market next week.

"The MRP of Dhara edible oils are being reduced by Rs 15-20 per litre across variants with immediate effect. This reduction is largely being done in variants such as soyabean oil, rice-bran oil, sunflower oil and groundnut oil, on account of reduced impact of international markets and ease in availability of domestic crop," Mother Dairy spokesperson said, according to PTI. 

The MRP of one litre pack of Dhara refined soybean oil has been slashed from Rs 170 to Rs 150, while Dhara refined rice bran oil will now be sold at an MRP of Rs 170 per litre instead of Rs 190. The MRP of Dhara refined sunflower oil has been revised to Rs 160 from Rs 175 per litre, and the MRP of Dhara groundnut oil has been reduced to Rs 240 from Rs 255 per litre, the report said. 

Adani Wilmar slashed prices of its 1 litre pouch of Fortune soyabean oil to Rs 140 from Rs 145 in April. The prices are lower by Rs 30 as compared with Rs 170 at the beginning of the year.

"We have taken bigger cuts in sunflower oil to Rs 135 from Rs 159 a litre in January, while mustard prices have been brought to Rs 152 from as high as Rs 175 in January," Angshu Mallick, chief executive officer and managing director of Adani Wilmar, told BQ Prime. 

According to the report, Hyderabad-based Gemini Edible and Fats India Ltd, which owns the Gemini brand, has also decided to cut prices by up to Rs 10 per litre.

Edible oil industry body SEA said, "The Department of Food and Public Distribution regularly review the price of edible oil in country. International prices has been sharply reduced in the last 6 months and particularly in last 60 days, however local prices, in spite of bumper crops of groundnut, soyabean and mustard, not declined in line with the International market." 

"While most of the brands have reduced prices in the past but still the prevailing MRP of the packed edible oil in the market is not in line with the current prices as in international market, i.e. the prices of edible oil (MRP) in domestic market seems to be on higher side considering the prevailing market scenario," the association said.