Govt asks companies to cut cooking oil prices
Industry executives said a reduction in retail prices may not be possible till March, when mustard crop harvest begins.
«The ministry of consumer affair has expressed that the MRP on oils like soyabean, sunflower and palm oil have not been reduced to the extent of decrease in international prices,» said Ajay Jhunjhunwala, president of Solvent Extractors' Association of India, in a letter addressed to association members on Tuesday.
However, industry executives said there is little scope for an immediate reduction in prices. "Cooking oil prices have been very stable.
There was no steep increase or decrease in prices. Our MRP is corrected every month in line with the prevailing price trends.
We do not foresee immediate correction in prices," said Angshu Mallick, CEO of Adani Wilmar, which sells cooking oil under the 'Fortune' brand. «However, we keep on watching the international commodity prices and will take action based on that.»
Sandeep Bajoria, CEO of vegetable oil brokerage Sunvin Group, said, «Prices had declined by about 10% in December and have again increased by 8% in January.»
Executives said most firms would be able to cut prices by only 3-4%.
