SEA asks members to reduce MRP on edible oil

With domestic edible oil prices showing no sign of easing in view of global developments, the Solvent Extractors Association of India (SEA) on Monday appealed to its members to reduce the minimum retail price (MRP) of cooking oils by Rs 3-5 per kg with immediate effect.

This is the second time the industry body is making such a request of its members; it had asked them to reduce MRP on edible oils by Rs 3-5/kg around Diwali in November 2021.

The industry body said in a statement that edible oil prices in the world are skyrocketing and this “imported inflation” is affecting all stakeholders and Indian consumers. “These prices are showing no immediate signs of moderating, and some exporting countries like Indonesia have also started regulating exports of palm oil by way of licensing,” the statement said.

Further, tensions in the Black Sea region between Russia and Ukraine are adding to the troubles, with sunflower oil coming from that region, it said. Inclement weather in Brazil on account of La Niña has reduced soya crop drastically in Latin America.

SEA said it has “requested and advised their members to reduce minimum retail price by Rs 3,000 to 5,000 per tonne on edible oils, with immediate effect to soften the prices”.

The industry body said it expects a record domestic mustard crop during the current year, which may bring some relief to consumers. It said the government has been proactive in taking prompt measures to cool down the prices before the new mustard crop starts hitting the market yards, such as the recent 2.5% reduction in import duty on crude palm oil.