Edible oil producers have dropped wholesale prices during the festival season

Major edible oil producers, including Adani Wilmar and Ruchi Soya Industries, have cut wholesale edible oil prices by Rs 4-7 per litre, said industry body Solvent Extractors Association (SEA) in a statement. Other edible oil companies are also expected to follow suit.

The players that have reduced the wholesale rates of edible oils are Gemini Edibles and Fats India Pvt Ltd (Hyderabad), Modi Naturals (Delhi), Gokul Refoils and Solvent Ltd (Sidhpur), Vijay Solvex Ltd (Alwar) Gokul Agro Resources Ltd and N K Proteins Pvt Ltd (Ahmedabad), said SEA.

These companies have already committed and reduced the wholesale bulk prices by Rs 4,000-7,000 per tonne (Rs 4-7 per litre) and others will be following them to reduce the edible oil prices, said SEA.

These companies have reduced the wholesale prices after the SEA appealed to its members to do so in order to give relief to consumers from high prices during the festival season. “The response from the industry is very encouraging,” SEA President Atul Chaturvedi said in a statement.

Chaturvedi said that the domestic soybean and groundnut crops are rebounding this year while initial reports of mustard sowing have been very encouraging and they are expecting a bountiful rapeseed crop as well.

Further, the world edible oil supply situation is improving which is likely to further cool down the international prices so that domestic prices in the ensuing marriage season come down as well, he added.

Domestic edible oil prices have shot up in tandem with the international market where rates have risen due to reduced availability of edible oils for food use following diversion for biofuel in Indonesia, Brazil and other countries.

India meets more than 60 per cent of its edible oils demand through imports. Any rise in global prices has a direct impact on local prices. To check prices, the government has taken steps including bringing down import duties substantially in the second week of October, which the SEA said has helped control runaway prices and is now reflected in the domestic wholesale rates.

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