Government asks edible oil firms not to hike retail prices

New Delhi: Insisting that there is enough stock of cooking oils, the Centre on Tuesday asked edible oil processors not to hike retail prices following recent increase in import duties.

The food ministry said the stocks imported at lower duties would easily last 45-50 days, and therefore the processors should refrain from increasing maximum retail prices (MRP).

Food Secretary Sanjeev Chopra chaired a meeting with the representatives from Solvent Extraction Association of India (SEA), Indian Vegetable Oil Producers’ Association (IVPA) and Soyabean Oil Producers Association (SOPA) to discuss the pricing strategy.

"The leading edible oil associations were advised to ensure that the MRP of each oil is maintained till the availability of edible oil stocks imported at 0 per cent and 12.5 per cent Basic Customs Duty (BCD) and take up the issue with their members immediately," an official statement said.

Last week, the Centre implemented an increase in the basic customs duty on various edible oils to support domestic oilseed prices.

India imports a large quantity of edible oils to meet domestic demand. The dependence on imports is more than 50 per cent of total requirements.

The decision to hike import duties is part of the government's ongoing efforts to bolster domestic oilseed farmers, especially with the new soybean and groundnut crops expected to arrive in markets from October 2024, the food ministry said.