Edible oil prices, which have skyrocketed in recent months due to the Russia-Ukraine war and exports ban by Indonesia, will soon reduce by up to ₹15 as Adani Wilmar and Mother Dairy have announced a price cut to pass on the benefit to its consumers following the government’s effort to reduce import duties on the commodity. While Adani Wilmar, the largest edible oil producer in the country, has slashed edible oil prices by ₹10 to pass on the benefit to its consumers, Mother Dairy, a cooperative company in Delhi-NCR selling edible oil under the brand name 'Dhara', has reduced prices of its cooking oils by up to ₹15 per litre.
FMCG major Adani Wilmar (AWL), a joint venture between Adani Group, chaired by billionaire Gautam Adani, and Singapore agribusiness Wilmar International, in a release on June 18 said that it has cut the maximum retail price (MRP) of its Fortune range of edible oils in line with cooling rates in global markets. Adani Wilmar has reduced the MRP of Fortune refined Sunflower oil’s 1-litre pack from ₹220 to ₹210 and the MRP of Fortune Soyabean and Fortune Kachi Ghani (mustard oil) 1-litre pack from ₹205 to ₹195. “The stocks with new prices will reach the market soon,” it said.
As per the company, the steep reduction in oil prices comes in the wake of the central government reducing the import duties on edible oils, making them cheaper.
“We are passing on the benefit of the reduced cost to our customers, who can now expect purest edible oils made with highest safety and quality standards which are also light on their pockets. We are confident the lower prices will also boost demand,” said Angshu Mallick, MD & CEO, Adani Wilmar.
It may be noted that international and domestic prices of edible oils surged during 2021-22 due to lower production of oilseeds and higher manufacturing and logistics cost. However, reduction in import duty on crude and refined edible oils has contributed to the cooling of the prices.
Similarly, Mother Dairy has slashed the prices of its cooking oils — mustard, soybean, and sunflower — by up to ₹15 per litre. As per the company, the reduction in price will be on the MRP, which is going to reach the market soon.
Last month, the government scrapped customs duty and agriculture infrastructure development cess on the import of crude soyabean oil and crude sunflower oil to curb the rising edible oil prices. As per a notification from the Ministry of Finance, the import of 20 lakh metric tonnes (MT) each of crude soyabean oil and crude sunflower per year will remain duty-free for a period of two years. The duty waiver on import of soyabean and sunflower oil is likely to bring down edible oil prices, which surged to record high in recent past due to conflict between Russia and Ukraine, which are one of the key producers. The four key edible oils, including palm, soya, mustard and sunflower, constitute 85-88% of the total consumption in India in terms of volume. Palm oil is primarily used by large-scale food processing enterprises, while soybean oil, mustard oil and sunflower oil are largely used for domestic consumption.
Indonesia, the world’s largest palm oil producer, has also lifted its ban on palm oil exports following an improvement in domestic supply. Palm oil imports account for more than half of India’s total imports in the vegetable oil segment. Indonesia supplies more than half of India’s edible oil imports.