Cooking oil cools as input costs decline
NEW DELHI: Retail prices of branded edible oil are inching down as packaged consumer goods firms pass on the gains from import duty cuts and cooling global prices, in a relief for millions of households scarred by rising prices. While Adani Wilmar, Patanjali, Mother Dairy and Emami Agrotech have already cut prices, others are expected to introduce promotions to win back consumers lost to cheaper products. Adani Wilmar has reduced the price of its 1 litre Fortune refined Sunflower oil pack from ₹220 to ₹210, and that of Fortune Soyabean and Fortune Kachi Ghani (mustard oil) 1 litre pack from ₹205 to ₹195. Angshu Mallick, managing director and chief executive officer, Adani Wilmar, said the company is passing on the benefit of lower costs to customers.
“We are confident that lower prices will also boost demand,” he added.
Patanjali Ayurved has lowered edible oil prices by 7-10%, an executive at the Baba Ramdev-led company said on condition of anonymity. Prices have been cut across its entire range of cooking oils including soybean, groundnut, sunflower, and rice bran after oil prices softened over the last six months, the executive said.
New Delhi-based milk cooperative Mother Dairy recently cut maximum retail prices (MRP) of its Dhara edible oils by up to ₹15 per litre across variants. “This reduction is largely being done for oils majorly consumed in our country such as mustard oil, soyabean oil and sunflower oil, on account of recent government-led initiatives, reduced impact of international markets and ease in availability of sunflower oil, including improved domestic sunflower crop. Dhara edible oil variants with the new MRP will reach the market by next week,” the company said on June 16.
BV Mehta, executive director, Solvent Extractors’ Association of India, said Cargill India has reduced the maximum selling price of its Gemini sunflower cooking oil by ₹35 per litre. Similarly, Emami, popular in the east, and other companies, have also reduced prices, along with the fall in international prices, he said. Cargill India, as well as Marico India which makes Saffola oil, declined to comment on prices.
Edible oil prices surged worldwide during 2021-22, as oilseed production fell, and manufacturing and logistics costs rose. However, the recent reduction in import duty on crude and refined edible oils have helped FMCG companies pass on the benefits to consumers. Global palm oil prices have also dropped below $1,300 per metric tonne, from the peak levels of $1,800-1,900 per metric tonne.