Adani Wilmar, Mother Dairy Slash Edible Oil Prices By Up To Rs 20 Per Litre
The packs with new prices are expected to hit the stores in the next 7-10 days.
Edible oil makers have further slashed their sticker prices, in a move that will help in cooling food inflation and lessen the strain on household budgets.
Companies including Adani Wilmar Ltd. and Mother Dairy have said that the retail prices have been brought down by up to Rs 20 per litre in May, in a bid to pass on the benefit of softening rates in global markets. The packs with new prices are expected to hit the stores in the next 7-10 days.
"The maximum retail price of Dhara edible oils are being reduced by Rs 15-20 per litre across variants, with immediate effect," a Mother Dairy spokesperson said.
"This reduction is largely being done in variants such as soyabean oil, rice bran oil, sunflower oil and groundnut oil, on account of reduced impact of international markets and ease in availability of domestic crop," the spokesperson said.
Adani Wilmar, the maker of Fortune oil, has also slashed prices of its 1 litre pouch of soyabean oil to Rs 140 from Rs 145 in April. The prices are lower by Rs 30, as compared with Rs 170 in the beginning of the year.
"We have taken bigger cuts in sunflower oil to Rs 135 from Rs 159 a litre in January, while mustard prices have been brought to Rs 152 from as high as Rs 175 in January," Angshu Mallick, chief executive officer and managing director of Adani Wilmar, told BQ Prime during a post-earnings call.
"We are confident that the lower prices will boost demand," Mallick said.
Hyderabad-based Gemini Edible and Fats India Ltd., which owns the Gemini brand, have also decided to cut prices by up to Rs 10 per litre.
The price cuts come just days after the food ministry asked retailers of edible oil to reduce prices, citing the sharp fall in global prices of palm, soyabean and sunflower oils and bumper production of domestic oilseeds, such as mustard, groundnut and soyabean this season. It has also sought details about their degree of reduction in maximum retail price, in the past three months.
"While most of the brands have reduced prices in the past, the prevailing MRP of the packed edible oil in the market is still not in line with the current prices in the international market, i.e., the prices of edible oil in the domestic market seems to be on the higher side," said Solvent Extractors' Association of India, citing a food ministry communication.
Ajay Jhunjhunwala, president of the association, said that the ministry has advised SEA to inform its members to reduce the MRP on edible oils, reflecting the sharp reduction in global prices over the past few months.
The government has already taken several steps to lower inflation, including reduction of import duties on palm oil, soyabean oil and sunflower oil, and limiting inventories to prevent hoarding.
India is the world's second largest consumer and the top vegetable oil importer. It meets 56% of its needs through imports annually.
Of the total 24-25 million tonnes of edible oil consumed, the country imports about 8 million tonnes of palm oil from Indonesia and Malaysia.
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