Inquiry revealed that the prices of all major commodities in the country are being closely monitored by the Government in wake of the present geo-political scenario and other reasons including extreme weather conditions around the world.
A study has pointed out that major economies have been adversely affected due to the above conditions. In India, the price of essential commodities, especially edible oils has reported a decline in October 2022 this year compared to previous years.
The decline in prices is attributed due to a series of proactive and pre-emptive measures taken by the Government to augment domestic availability and stabilize prices of essential food commodities. A Committee is in place in the Department of Food & Public Distribution and reviews the prices of all major commodities which recommends appropriate timely measures to keep a tab on the prices and at the same time also keep the interest of the farmers, industries and consumers in view.
Various measures like reduction in import duties and cess on pulses, rationalization of tariff, imposition of stock limits on edible oils and oilseeds, buffer stock maintenance of onion and pulses have all helped in restraining the soaring commodity prices due to pandemic-induced, supply-demand imbalances.
Presently, edible oil prices in the international market are witnessing a firm situation. Due to consistent monitoring and a series of interactions with the edible oil industry, the government has ensured that the benefit of the previously declined prices in the international prices of edible oil is being passed on to the consumers.
As per the Edible oil industry sources and current data, the global prices of different edible oils have fallen by USD 200-300 per ton in the last two months. This decline has started to reflect in the retail markets. The retail prices of edible oils are expected to come down further in the coming days.
In the last three months, all India's Average Domestic Retail prices of Refined Sunflower Oil had decreased to Rs. 170/kg from Rs. 181/kg, in the case of Vanaspati prices decreased from Rs. 154/Kg to Rs. 146/Kg and for Refined Soyabean from Rs. 157/Kg to Rs. 154/Kg. Mustard Oil Prices decreased from Rs. 173/Kg to Rs. 170/Kg. All India Average Domestic Retail prices of RBD Palmolein has decreased to Rs. 119/Kg from Rs. 138/Kg.
The reduction in oil prices came as a result of the Central Government’s decision to reduce the import duty on edible oils making them cheaper. The industry has been asked to ensure that the complete benefit of the reduced duty is passed on to the consumers invariably.
All India retail prices of RBD Palmolein, Refined Soyabean Oil, Refined Sunflower Oil, Mustard Oil and Vanaspati decreased by 26%, 9%, 12%, 9% and 11% during last 6 months.
The Government’s timely intervention in curbing the mounting export of Wheat and Sugar through export regulations has insulated the prices of these commodities from increase in contrast to the prices prevailing in the global market. Wholesale prices of wheat in the domestic mandis have declined and the Wheat prices in the Country stabilized as the Central Government’s series of policy interventions on the export of foodgrains.
If the commodity-price moderation seen in recent weeks continues, along with an easing of supply-chain pressures, then there will be more relief for consumers.