The centre has asked trade bodies to reduce edible oil prices by Rs 15 per litre immediately because prices in the world market have fallen sharply, the government said in a statement, as per a Reuters report.
The government directed trade bodies to quickly pass on the reduction in global prices to end-consumers, the Reuters report said.
India is the world’s biggest importer of vegetable oils.
India buys palm oil mainly from Indonesia, Malaysia and Thailand, while soyoil is mainly sourced from Argentina, Brazil and the United States. India imports sunflower oil from Ukraine and Russia.
Last week, the food ministry called a meeting of cooking oil industry bodies and manufacturers to deliberate on reduction in the retail prices of cooking oils as there has been a fall in global prices.
Solvent Extractors’ Association of India’s (SEA) Executive Director B V Mehta said the global prices have fallen by $300-$450 per tonnes of different edible oils in the last one month, but it takes time to reflect in the retail markets. He said retail prices were expected to come down in the coming days, according to a PTI report.
Meanwhile, India’s palm oil imports in July are set to jump to the highest in 10 months because of a hefty correction in prices and as Indonesia allows more exports of the tropical oil, four dealers told Reuters.