Veg oil industry seeks review of edible oil weight in WPI

Industry body SEA today sought a revision in weight given to edible oils within the overall cooking oil basket in the wholesale price index (WPI) saying consumption pattern has changed in the last one decade.
The Solvent Extractors' Association (SEA) has written to the Finance Ministry and the Food Ministry requesting a review of weight of individual oils within edible oil weightage basket.
"The Association has represented to the Department of Food & Public Distribution as well as Ministry of Finance to review the weight of edible oil in WPI due to change in consumption pattern and prices in the last 10 years and urged due consideration be given for weight of individual oils within edible oil weightage basket," SEA President Vijay Data said in a letter to its members.

The government has appointed a high power committee for revamping the Wholesale Price Index (WPI).
In Wholesale Price Index, weight of edible oils is 3.04293 per cent under food articles fixed in 2004-05 and it is based on consumption and average price.
"Consumption pattern of vegetable oils has totally changed in the last few years. Total consumption of edible oils in the country is about 180 lakh tonnes per annum, out of which vanaspati consumption is just 9 lakh tonnes i.E. Just 5 per cent. However, based on WPI 2004-05, the percentage within edible oil basket for vanaspati is 23.5 per cent," it argued.

Similarly, SEA said, palm oil consumption is nearly 45 per cent of the total consumption of edible oils but its weightage is hardly 0.41999 per cent.
The association said that similar is the case for other oils.