Edible Oil: In recent months, the prices of edible oil have been skyrocketing, badly affecting the monthly budget of common Indian families. But now there is a relief news! The central government has announced a massive cut of 10 percent in the duty on the import of crude edible oil.
This is a move that is expected to bring down the retail prices of edible oil by 5-6 percent in the coming two weeks. Sudhakar Rao Desai, Director and CEO of Emami Aggrotech, told the media that, “Edible oil prices, which had increased by about 17 percent in recent months, are now gradually coming down.
We are hopeful that it will come down to single digit very soon.” This decision will not only bring relief to consumers but will also give new energy to the edible oil industry of the country.
Will mustard oil prices also be affected
The question being raised in every household is whether only imported oils will be affected, or will the prices of our traditional mustard oil also fall? An executive of a leading edible oil manufacturer in eastern India said that the benefit of this cut in retail prices is expected to be seen in about 2 weeks, but early signs of softening of prices have already started appearing in the wholesale markets.
He emphasized that the price correction will not be limited to imported oils only. Sudhakar Rao Desai clarified, “Even mustard oil, which is not directly dependent on imports, may see a reduction of 3-4 percent due to the overall downward pressure in the edible oil market.” This is very good news as mustard oil is the main cooking oil in many parts of India and the reduction in its price will directly benefit millions of families.
Policy change gives new life to the domestic refining industry
There is another important aspect behind this duty cut which is giving new life to India’s edible oil refining industry. Now the difference between crude and refined oil duty has increased from 12.5 percent to 22.5 percent. This simply means that it has become much more cost-effective for companies to import crude oil and refine it domestically.
Keshav Kumar Halder, Managing Director of Halder Venture Limited, described this change as “a big change”. This policy change will promote edible oil production and refining within the country, which will enable us to reduce our dependence on imported refined oils. It will also strengthen the ‘Make in India’ initiative of the Central Government.
Dependence on imported refined oil will be reduced
The head of the stock market-listed agricultural firm Halder Venture further said, Domestic retail prices of imported edible oils like soybean, sunflower, and palm oil are expected to decline gradually. And this decline is also likely to spread to domestically produced oils like rice bran and mustard oil.
Leading industry players estimate that this policy change can increase capacity utilization in the refining sector by 20-25 percent. This will not only create employment opportunities but will also help make the country self-reliant in edible oils. There will also be foreign exchange savings, which is a positive sign for the country’s economy.