Explanation sought from companies on high prices of mustard oil and refined oil
14-Oct-2024 02:13 PM
New Delhi. The central government has asked food companies why they are selling their products at high prices in the domestic sector despite importing at low prices? In recent weeks, prices of mustard oil and refined soybean oil have increased significantly, following which the prices of other edible oils have also gone up.
After deciding to increase the import duty on edible oils by 20 percent, the government had called a meeting of the manufacturers of major brands and said that there is enough stock of edible oils imported earlier at low duty that domestic demand and requirement can be met for the next 45-50 days and hence companies should avoid increasing the maximum retail price (MRP) on their brands till then.
It is understood that in that meeting, major companies had expressed their in-principle agreement on this suggestion of the government.
The government hoped that at least during the festive season, the prices of edible oils would not increase much and the market would remain stable within a certain limit. But this could not happen, which increased the concern of the government.
As a result, clarification has now been sought from the companies. According to experts, despite the availability of stock of edible oils imported in India before the increase in customs duty, the MRP of major brands has increased, which is making the pockets of consumers lighter.
On September 14, the government had increased the basic import duty on crude and refined edible oils by 20 percentage points and on September 17, by calling a meeting of the companies, warned them not to increase its price for one and a half to two months, but despite this, the process of increase in prices is continuing.
According to senior official sources of the Food Ministry, the companies have been asked to give clarification on the price increase in edible oils.
They have been asked why the price of edible oil is increasing despite the instructions to keep the retail price stable during the festive season.
The government had increased the import duty on crude and refined categories of palm oil, soybean oil and sunflower oil and in the domestic segment, mustard oil and groundnut oil prices are also witnessing an increase.