Centre says its keeping a close watch on cooking oil prices

New Delhi, (PTI): The government is keeping a ”close watch” on daily prices and imports of edible oils so that it could take appropriate measures to check rates of cooking oil, an official statement said on Thursday.

Prices of cooking oils in the domestic market are ruling at high level. The central government has already reduced import duties on crude and refined edible oils, including palm oil, to bring down retail prices.

”A close watch is kept on day to day basis on production, imports and prices of edible oils and so that appropriate measures can be taken to keep a check on the prices of edible oil,” the Ministry of Consumer Affairs, Food and Public Distribution said.

An inter-ministerial committee on agri-commodities chaired by Secretary (Food) is also in place to closely monitor the prices and availability of agricultural commodities including edible oil keeping in view the interest of the farmer, industry, and consumers.

The committee, the statement said, reviews price situation on weekly basis, considers relevant measures in relation to edible oils and other food items depending on the domestic production, demand, domestic and international prices, and international trade volumes.

”Timely interventions by the government have been made in the last year as and when needed so as to ensure that the prices remain stable and interest of consumers is protected within the limitations of international fluctuations,” it said.

Due to a gap between demand and supply, around 60 percent of edible oils consumed in the country are met through imports.

Palm oil imports account for 54 percent of India’s total edible oil imports. Palm oil mainly comes from Indonesia and Malaysia.

Soyabean oil, which constitutes around 25 percent of the total imports, is mainly shipped in from Argentina and Brazil. Sunflower oil accounts for 19 percent of total edible oil imports.

The ministry highlighted that the country achieved the highest production of mustard seeds at 101 lakh tonne this year compared to from 91 lakh tonne (LT) last year.

Imports of palm oil (crude and refined) in August stood at 7.43 LT as against 5.65 LT in the previous month.

”The percent increase in August is 31.50 percent from the previous month which is largely due to the opening up of the economy,” the statement said.

However, the ministry said the import of palm oil in August this year at 7.43 LT is lower than August 2020 (7.48 LT) and August 2019 (8.81 LT).

According to industry body Solvent Extractors Association of India (SEA), the total import of vegetable oils (edible and non-edible oil) during November 2020 to July 2021 fell by 2 percent to 96,54,636 tonne, compared to 98,25,433 tonne in the corresponding period of the previous oil year (November-October). (PTI)