The reduction in oil prices comes in the wake of Central Government reducing the import duty on edible oils making them cheaper.
Tag: Edible oil
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Ukraine crisis may hit edible oil imports: Nirmala Sitharaman
By Express News Service
BENGALURU: Union Finance Minister Nirmala Sitharaman on Wednesday said the Russia-Ukraine war will impact edible oil imports to some extent and India is already looking at other alternatives to import it.“Sunflower oil is imported to India from Ukraine, which is a large producer of sunflower oil. So edible oil supply will be affected to some extent,” the minister told the media in Bengaluru.
Stating that the Union Government is already looking at other alternatives to import edible oil, the minister said they are looking at various other places from where any other edible oil, if not sunflower oil, that can be used in India and can be imported. “Edible oil is also going to be an area in which we may have challenges and see how we can address it,” she elaborated.
In the long run, to reduce India’s dependence on other countries for importing edible oil, the Centre is encouraging the cultivation of palm, groundnut and sesame. Sitharaman said they are supporting farmers taking up palm cultivation in the north east. However, the problem with palm cultivation is that it will take six years to bear fruit and farmers will have to be supported through that period.
On the impact of Ukraine crisis on crude oil prices, the Finance Minister said they are watching the developments post the full-blown war. “Global oil supplies and other indicators are going much higher than what was expected, but we have to see and also identify if there are ways in which we will be able to procure additional quantities. We have to see how it goes and how we can handle it,” she added.
‘GST relief cess extended to repay loans’Bengaluru: Finance Minister Nirmala Sitharaman on Wednesday said the Goods & Services Tax (GST) compensation cess has been extended up to March 2026 to repay loans taken for the states to overcome the shortfall in GST compensation during 2020-2021. “The GST council has extended the compensation cess to up to March 2026 for paying the loans which were taken for all the states in 2020 for the compensation which could not be paid that year and somewhat paid in 2021,” she said responding to a question on Chief Minister Basavaraj Bommai’s request to extend the GST compensation to the states at least for another three years. The GST council had decided that the Centre would borrow back-to-back and pay compensations to the states. The loan together with the interest itself required that the compensation cess be extended till March 2026, she explained. Many states, including Karnataka, are demanding an extension of GST compensation as the window ends in June 2022.
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Retail edible oil prices drop by Rs 5-20 per kg in major markets: Food Secretary
By PTI
NEW DELHI: Edible oil prices in the major retail markets across the country have declined by Rs 5-20 per kg after various measures, including an import duty cut, by the government, Food Secretary Sudhansu Pandey said on Friday.
The official said that branded oil makers have also revised the rates for new stock. Domestic edible oil prices have soared in tandem with the global prices which shot up due to reduced availability of edible oils for food use following diversion for biofuel in Indonesia, Brazil and other countries.
“The government has taken a number of steps to ensure consumers get relief from high prices. We are happy to share the trend from 167 centres. Edible oil prices have declined quite significantly in the range of Rs 5 and 20 per kg in the major retail markets across the country,” Pandey said during a press briefing.
For instance, retail palm oil price in Delhi declined by Rs 5 to Rs 133/kg on November 3 from Rs 139/kg, while it fell by Rs 18 to Rs 122/kg from Rs 140/kg in Aligarh, Uttar Pradesh, while by Rs 7 to Rs 125/kg in Cuddalore, Tamil Nadu from Rs 132/kg in the said period, he said.
Even retail price of groundnut oil declined by Rs Rs 5-10/kg, while soyabean oil by Rs 5-11/kg, and sunflower oil by Rs 5-20/kg between October 31 and November 3, he added. The government monitors retail prices of six edible oils from 167 centres across the country.
In the case of mustard oil, the Secretary said, “we have not seen a significant reduction in prices,” but the steps taken by the government including import duty rationalisation will have an impact on prices of mustard oil as well.
“We are going to see a southward trend in mustard oil prices too,” he said, adding that ongoing sowing of mustard seed is better than last year. The area sown to mustard seed, a rabi crop, is 11 per cent better than the year-ago period, he added.
Asked by when the branded cooking oils will revise the rates, the Secretary said, “I have spoken to the industry and they have confirmed that they have revised theP for new releases.” In fact, the industry body SEA has advised its distributions, retailers and wholesalers to pass import duty cut to consumers even on the old stock, he said.
Major edible oils players, including Adani Wilmar and Ruchi industries, have cut wholesale prices by Rs 4 -7 per litres to give relief to consumers during the festival season, a government statement said.
The other players that have reduced the wholesale prices of edible oils are Gemini Edibles and Fats India, Hyderabad, Modi Naturals, Delhi, Gokul Re-foils and Solvent, Vijay Solvex, Gokul Agro Resources and N K Proteins, it added.
While the global edible oil prices have stabilized at higher levels in the last ten days, but the reduction in import duty and other steps like imposition of stock limits to curb hoarding has helped cool down domestic prices, the secretary said.
Pandey said the reduction in petrol and diesel rates will also have an overarching impact on local edible oil prices as distribution cost will get reduced.
Currently, the Uttar Pradesh government has imposed a stock limit up to 25 tonne on wholesale and retailers to check prices. Three more states are at advanced stages of imposition of the stock limits. The secretary said the Centre will review the status of the stock limit with state governments next week.
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Edible oil is expensive, but pulses prices fall
Even though there has been a slight decrease in arrivals due to crop affected, prices of edible oils have remained strong. But there is a relief news for consumers that prices of pulses, including pulses, are falling. In two months, pulses have become cheaper by Rs 14 a kg. Prices of gram dal and masoor dal are also declining along with tur dal. Rahar dal, which has been sold for up to Rs 125 in the retail market, has started selling these days at Rs 110 a kg. Along with this, prices of chana dal and urad dal are falling. However, edible oil available for Rs 100 per liter is being sold for Rs 135 to Rs 140 per liter. Cereal traders say that there are still signs of a fall in the prices of pulses. These days sugar is being sold at Rs 3,450 per quintal in bulk and up to Rs 37 a kg in retail. Even after the Makar Sankranti, the price of sesame has fallen by 20 percent compared to last year. Sesame is being sold for Rs 140 a kg these days, whereas last year it was sold for Rs 170 a kg. The cost of jaggery is also Rs 45 a kg.