Leading edible oil associations told to pass on the benefits of the reduction to the consumers whenever the manufactures/refiners reduce the price to distributors.
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The Centre has directed leading edible oil associations to ensure reduction in the MRP of edible oils by Rs 15 with immediate effect.
Giving this information on Friday, the Ministry of Consumer Affairs, Food & Public Distribution said the direction was issued by the Department of Food and Public Distribution in a meeting on July 6.
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The ministry said, “The Centre also advised the manufacturers and refiners to reduce the price to be paid to distributors immediately so that the price drop is not diluted in any way.”
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The ministry further said that it was also conveyed to the association that whenever the manufactures/refiners reduce the price to distributors, the benefit should be passed on to the consumers and the department should be kept informed on a regular basis.
The companies that failed to reduce prices of edible oil and their MRP remained higher than other brands have also been advised to reduce their prices.
During the meeting, the downward trend in the international prices of imported edible oils came up for discussion. It is seen as positive development. The domestic edible oil industry should take a cue from it and ensure that the prices in the domestic market are also reduced commensurately.
This price drop has to be passed on to consumers without in a laggard fashion. Other issues like price data collection, Control Order on edible oils and packaging of edible oils were also discussed in this meeting.
In May, the department had convened a meeting of the leading edible oil associations and according to sources, the MRP of Fortune Refined Sunflower Oil 1 litre pack had been decreased to Rs 210 from Rs 220 and MRP of Soyabean (Fortune) and Kachi Ghani oil 1 litre pack from Rs 205 to Rs 195.
The reduction in oil prices came in the wake of the Central government reducing the import duty on edible oils making them cheaper. The industry was advised to ensure that the complete benefit of the reduced duty is passed on to the consumers invariably.
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