MARKET DEVELOPMENT
India's edible oil producers' body urges members to cut prices to help consumers
India's edible oil producers' body urges members to cut prices to help consumers
01.11.2021 (www.nasdaq.com) - By Mayank Bhardwaj
NEW DELHI, Nov 1 (Reuters) - The head of India's edible oil producers' association called on producers on Monday to voluntarily cut wholesale prices to help consumers reeling from a sharp increase in global prices.
Domestic demand for edible oils in India, the world's biggest consumer of cooking oils, rises in October and November when Indians - whose diet contains a lot of high-calorie and deep-fried food - celebrate a series of festivities such as the upcoming Diwali festival of lights.
"Ahead of Diwali, a lot of our members have already decided to reduce the price of edible oils by 3,000 rupees ($40.03) a tonne to 5,000 rupees a tonne," said Atul Chaturvedi, president of the Solvent Extractors Association of India.
"We've requested everyone involved either in production or marketing of edible oils to reduce prices by at least 3,000 rupees a tonne to 5,000 rupees a tonne to give relief to consumers," Chaturvedi said.
India imports more than two thirds of its edible oils, and a rally in international prices has pushed up local rates.
The country imports palm oil mainly from top producers Indonesia and Malaysia, while other oils, such as soy and sunflower, come from Argentina, Brazil, Ukraine and Russia.
The benchmark palm oil contract FCPOc3 on the Bursa Malaysia Derivatives Exchange has risen 37% this year.
Last month, India slashed various import taxes on palm oil, soyoil and sunflower oil to help consumers.
The reduction in import taxes on edible oil has already led to a drop in local prices.
Domestic wholesale prices of edible oils have dropped by 7% to 11% in the past few weeks, Chaturvedi said.
New-season harvests of the soybean and peanut crops would further bring down prices, he said, as both oilseed crops look robust this year.
($1 = 74.94 rupees)
(Reporting by Mayank Bhardwaj; additional reporting by Liz Lee in Kuala Lumpur; editing by Susan Fenton)