The wholesale and retail prices of vanaspati, soyabean oil, sunflower oil, and RBD palmolein have decreased over the week.
With edible oil prices beginning to show a downward trend and are set to decline further, Indian consumers can expect to pay less for their edible oils.
The falling edible oil prices will help in cooling the inflation as well, said Secretary Department of Food and Public Distribution, Shri Sudhanshu Pandey on Wednesday.
“All major edible oil brands have cut prices by 10-15 rupees,” Shri Pandey said. He added that this has been possible due to constant monitoring by the department, constant engagement with all stakeholders, and multiple interventions by the government. According to sources, the MRP of Fortune Refined Sunflower Oil 1 liter pack has been decreased to Rs. 210 from Rs. 220.
Reduction in import duty on edible oils
The MRP of Soyabean (Fortune) and Kachi Ghani oil 1-liter pack has reduced from Rs. 205 to Rs. 195. The reduction in oil prices comes in the wake of the Central Government reducing the import duty on edible oils making them cheaper.
Partha S Das, Joint Secretary, DFPD, added that in the surprise inspections conducted in Maharashtra, Rajasthan, Gujarat, Madhya Pradesh, Uttar Pradesh, West Bengal, Telangana, and Karnataka in phase-I and Phase-II, 156 and 84 entities, respectively.
He said these inspections had a deterrent impact as the number of defaulting entities decreased in Phase II of the surprise inspections. In Phase-I, 53 entities, and in Phase-II, 12 entities inspected were found to be defaulting on the Central Stock Control Order.
The concerned State Governments have been requested to take suitable action under the Essential Commodities Act, 1955 against the defaulting entities as per provisions made in the Act. However, while taking suitable action, the State Governments have been requested to ensure that the supply chain is not affected in an adverse fashion.
Tariff Rate Quota (TRQ)
In its latest initiative to ease the prices of edible oils and provide relief to consumers, the government has issued a notification for the allocation of the Tariff Rate Quota (TRQ) for the import of 20 LMT of crude soybean oil and 20 LMT of crude sunflower oil for the financial years 2022-23 and 2023-24 at zero import duty and zero AIDC.
This has been done keeping in view the rising domestic prices of Edible Oils, the average increase in domestic demand, and uncertainty and decline in Global Palm Oil availability.
It may be recalled that in a bid to control the continuous rise in the price of cooking oil over the past year, the Central Government had earlier cut the basic duty on crude palm oil, crude soyabean oil, and crude sunflower oil from 2.5% to nil.
The Agri-cess on these Oils has been brought to 5%. The basic duty on Refined Soyabean oil and Refined Sunflower Oil has been slashed to 17.5% from the current 32.5% and the basic duty on Refined Palm Oils has been reduced from 17.5% to 12.5%. The Government has extended the free import of Refined Palm Oils for a period up to 31.12.2022.
Further, stock limits on edible oils and oilseeds have been imposed for a period up to December 31st, 2022 to ensure the smooth availability of edible oils and oil seeds in the country.
Surprise inspections of the Stocks of Edible Oils
In order to ensure strict enforcement of the control order, Central teams from the Department of Food & Public Distribution were deputed to conduct surprise inspections of the stocks of edible oils & oilseeds held by Retailers, Wholesalers, Big Chain Retailers, and Processors in major oilseed producing/consuming States to prevent hoarding and profiteering.
All the above-mentioned timely interventions by the government, along with cutting down import tariffs on soyabean oil and sunflower oil and the removal of an export ban by Indonesia, have created an enabling environment for edible oil companies to cut retail prices.
More price reductions can be expected as the global supply improvements and the operationalization of the Tariff Rate Quota (TRQ) start reflecting on the landed cost of crude edible oils.
The recent decision of the Government to reduce the excise duty levied on petrol and diesel has further helped in cooling down the prices of all commodities.
The price situations of the above commodities are being closely monitored on a day-to-day basis so that appropriate, timely measures may be taken to keep a check on their prices.
Inter-Ministerial Committee on Agri-Commodities
The Inter-Ministerial Committee on Agri-Commodities chaired by the Secretary (Food) which is in place closely monitors the prices and availability of agricultural commodities keeping in view the interest of the farmer, industry, and consumers.
The committee reviews the price situation on weekly basis and considers relevant measures in relation to edible oils and other food items depending on the domestic production, demand, domestic and international prices, and international trade volumes.
The timely interventions and measures by the government as and when needed have had a cumulative effect on controlling the prices of these essential commodities and ensured that the prices remain stable and the interests of consumers are protected.
One Nation, One Ration Card
The Secretary also talked about the One Nation, One Ration Card, which is now being implemented across the country.
He said that so far since August 2019, the total portable transaction reported was over 71 crores. Subsidies worth more than 40 crores have been distributed through portable transactions.
He said that the department has created a robust central database to store 79 crore ration cards, which the government of India may utilize to formulate future policies and programs for the benefit of the public.
This database can be used in deepening the implementation of Ayushman Bharat, the PM Kisan scheme, for the Ministry of Labour. Adding on he said that the Department has deleted 4.74 crore ration cards that were found bogus.