How will the price of edible oils come down?
In order to soften the prices in the domestic market, the government on Sunday imposed a stock or storage limit on the traders of edible oils till March 31. However, some importers-exporters have been exempted from this. The futures trading of mustard oil has already been banned from October 8 on the NCDEX platform.
According to government data, the prices of edible oils have increased by 46.15 percent in the domestic retail markets during the last one year. Apart from global factors, the prices of edible oils are increasing due to the supply being affected in the domestic market.
There has been an increase of 43 percent in the price of mustard
According to consumer ministry data, the average price of soya oil on October 9 this year was Rs 154.95 per kg, which is 46.15 per cent higher than Rs 106 in the same period a year ago. Similarly, the price of mustard oil has increased by 43 percent from Rs 129.19 to Rs 184.43 per kg. During this period, the price of vegetable has increased by 43 percent from Rs 95.5 to Rs 136.74 per kg.
Sunflower oil has increased by 38.48 percent to Rs 170.09 per kg and palm oil has increased by 38 percent to Rs 132.06 per kg. India meets 60 percent of its edible oil requirement from imports.
The Ministry of Food and Consumer Affairs said in a statement, ‘This decision of the Center will bring down the prices of edible oil in the domestic market. This will give relief to the consumers across the country.
‘Prices have increased due to higher prices in the international market’
According to the order issued to all the states, the state governments and union territories will decide on the storage limit of edible oils and oilseeds based on the available stock and consumption pattern. However, some importers and exporters are exempted from the stock limit. This exemption will be available to those exporters who have the Importer-Exporter Code issued by the Directorate General of Foreign Trade (DGFT) and will be able to state whether they have full or some of the stock for export purpose.
Apart from this, exemption will be given to such importers who will be able to state that a part of their stock in respect of edible oils and oilseeds has been imported, the ministry said. The ministry said that due to higher prices in the international market, the prices of edible oils have increased in the domestic market as well.
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