According to the solvent extractors association, the government has asked cooking oil companies to align their product prices with the decline in international rates. However, manufacturers have indicated that an immediate reduction may not be feasible
Industry executives stated that a reduction in retail prices may not be achievable until March, when the mustard crop harvest kicks off.
“The ministry of consumer affair has expressed that the MRP on oils like soyabean, sunflower and palm oil have not been reduced to the extent of decrease in international prices,” said Ajay Jhunjhunwala, president of Solvent Extractors’ Association of India, in a letter addressed to association members on Tuesday.
Nevertheless, industry executives indicated that there is limited room for an immediate decrease in prices.
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“Cooking oil prices have been very stable. There was no steep increase or decrease in prices. Our MRP is corrected every month in line with the prevailing price trends. We do not foresee immediate correction in prices,” said Angshu Mallick, CEO of Adani Wilmar, which sells cooking oil under the ‘Fortune’ brand. “However, we keep on watching the international commodity prices and will take action based on that.”
Sandeep Bajoria, CEO of vegetable oil brokerage Sunvin Group, said, “Prices had declined by about 10% in December and have again increased by 8% in January.”
Executives mentioned that the majority of companies could only manage a price reduction of 3-4%.
