Oil Price: The government has now intensified two-way efforts to rein in the ever-increasing edible oil inflation in the country. To provide relief to the common consumers, first, the import duty on edible oils was reduced, and now to know its effect, a major inspection campaign has been launched in oil mills and processing units across the country. With this initiative of the central government, it is expected that edible oils like mustard, soya, and sunflower may soon become cheaper.
The Food Ministry has clearly stated that it will keep a constant watch to control prices, and if any company delays in reducing prices or any irregularity is found, strict action will be taken against it. Just a week ago, the ministry had a meeting with major organizations of the oil industry and directed them to pass on the benefits of the relief in import duty to consumers.
The government has asked companies for MRP reports
The government has asked companies for brand-new MRP reports every week. In the last few days, inspection campaigns were conducted in large oil units and port-based refineries of states like Madhya Pradesh, Gujarat, Maharashtra, and Andhra Pradesh. Crude palm oil, soya oil, and sunflower oil are imported and processed on a large scale in these states.
The main objective of this campaign is to see whether the common consumers are getting the benefit of reducing the import duty on edible oils or not. The government was receiving complaints from many places that the cost of edible oil has come down, but the companies have not made any changes in the Maximum Retail Price (MRP) and Distribution Price.
Companies’ claims and future expectations
During the investigation, most of the companies said that they had already reduced the MRP. They assured that in the future, as cheap crude oil comes, the prices will go down even more. The government found that some brands have already reduced the price of oil. Due to this, oil may be available even cheaper at the retail level in the coming time. It is a ray of hope that the benefits of this activism of the government will soon reach the consumers and the kitchen budget will be a little lighter.
Government’s efforts and their possible results
The government’s two-pronged strategy is important to control inflation:-
This directly reduces the cost of imported oils, making oil available at a lower price for companies.
This ensures that the benefit of the cost reduction received by companies actually reaches the consumers, and not just increase the profits of the companies.