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SEA urged its members to lower the edible oil prices during festival season

SEA urged its members to lower the edible oil prices during festival season

Solvent Extractors’ Association of India (SEA) urged its members to lower the edible oil prices during the Dewali festival season

During the current festival season, the Indian Vegetable Oil Producers’ Association (IVPA) has recommended its members lower the cost of edible oils.

The Solvent Extractors’ Association of India (SEA) had requested that its members lower the prices of edible oils during the festival season on Monday. As a result, some of the country’s largest edible oil producers have lowered their prices.

Also Read: Edible oils imports dropped by 27% in Feb 2021 due to excessive imports and higher prices

SP Kamrah, Secretary-General of IVPA, encouraged members to guarantee that costs are reduced and that they work on a no-profit basis throughout the festival season in the advice given to IVPA members.

‘Some of the major firms have already declared a 35-cent reduction in costs per liter, and others are being asked to follow suit,’ he said.

IVPA urged its members to take all necessary steps to manage and monitor prices in the consumer’s best interests, as well as to push the distribution channel, particularly retailers, to lower prices. It also asked members to guarantee that the supply chain to shop shelves was adequate.

Members were asked to contact their distributors and merchants so that customers may benefit from the price reduction. According to Kamrah, the IVPA’s petition on the issue will provide some relief to customers throughout the festival season.

Cost-cutting measures

Following a spike in the price of edible oils, the government took a number of steps to control and lower the price. The measures included a steady reduction in import tariffs and maintaining a low base price or tariff price in comparison to market rates. It also established a webpage for edible oil stock and price monitoring techniques.

Despite all of these steps, global factors have contributed to price increases, particularly the rally in global palm oil prices caused by stagnating production and other demand considerations, according to Kamrah.

Also Read: Imports of edible oil fell by 20% in June, owing to increased inventory in the country

‘However, we predict a bigger respite at consumer prices due to the succeeding Kharif crops complementing imports, and we can also expect some fall in world prices after a major spike in the recent few months,’ he said in the advice.