New Delhi, 17 June (IANS). The prices of edible oils may fall in the coming weeks in the domestic retail market. The reason for this is to transfer the cost reduction from the refiners to the customers. The first half of 2025 saw a decrease in the prices of edible oils due to the price increase globally and the decrease in the price of the currency.
The report released on Tuesday by CARAM stated that the possibility of a decrease in the prices of edible oils is due to the reason for the government to cut custom duty on May 30.
The Ministry of Consumer Affairs has also issued instructions to edible oil companies to reduce their maximum retail price (MRP) and to update the distributor at PTD rates.
The report reported that the food inflation has come down to 2.8 percent in May and the Indian Meteorological Department has estimated a strong monsoon than normal, with these developments, the trends of the fall in retail prices collectively are expected to gain speed.
The report stated that the increase in fee difference between raw and refined edible oils will also increase competition of domestic refiners. Basic custom duty on crude palm oil has now been reduced to 10 percent and custom duty on refined edible oils is unchanged at 32.5 percent, causing the custom duty difference between raw and refined edible oils to increase from 8.25 percent to 19.25 percent.
The revised custom duty structure is expected to benefit prominent players as it will prefer imports of crude edible oil instead of refined oils. This will improve capacity usage and increase refining margin through an increase in domestic processing.
India is the world’s largest importer among edible oils. The country imports 55-60 percent of its needs from Indonesia and Malaysia. India has imported 15.96 million tonnes (MT) edible oils in Oil Year 2023-24. Palm oil had 55 percent stake in it, while the rest was of soybean and sunflower oil.
-IANS
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