The Solvent Extractors Association of India (SEA), the leading trade organization representing the edible oil industry, has called upon all its members to align with the declining international market conditions by lowering the Maximum Retail Price (MRP) and Price to Distributor (PTD) of edible oils.
Furthermore, the SEA has made an additional appeal to distributors, urging them to closely monitor retailers within their distribution network. The objective is to ensure that not only the Maximum Retail Price (MRP) is reduced but also that the Margin of Profit (MOP) is adjusted in line with the latest price reduction. Additionally, the SEA emphasizes the importance of aligning the selling price of any old stock circulating in the market with the most recent price reduction.
SEA expressed the government’s deep concern regarding the domestic price of edible oil, anticipating a decline in prices to align with the decreasing trends in the international market. This concern was raised during virtual meetings with officials from the Department of Food & Public Distribution.
“We discussed the decrease in edible oil prices in the country compared to the falling international prices. We have conveyed that major brands have already reduced the prices of edible oils over the last few months in alignment with the falling global market,” said Mr Ajay Jhunjhunwala, president, of SEA.
He added “We are pleased to report that India’s monsoon is performing relatively well, with most oilseed production areas receiving sufficient rain for sowing. As of 12th July 2023, North-West India and Central India have received excess rain, although East & North East India are still facing a deficit. Overall, the country received 2% above normal rainfall.”
After a sluggish beginning caused by the delayed monsoon onset, the sowing process has now gained momentum. As of 14th July 2023, the acreage dedicated to oilseeds was reported at 139.3 lakh hectares, marking a rise from 137.0 lakh hectares during the corresponding period last year. However, there has been a reduction of 1.86 lakh hectares in soybean acreage, whereas groundnut acreage has expanded by 2.13 lakh hectares, attributed to the favorable cyclone rains, according to SEA’s statement.
