To give relief to consumers during the festival season, major edible oil players, including Adani Wilmar and Ruchi Soya Industries, have cut wholesale prices by Rs 4-7 per litre and other companies are also expected to follow the suit, industry body Solvent Extractors Association (SEA) said on Tuesday.
The other players that reduced the wholesale rates of edible oils are Gemini Edibles and Fats India Pvt Ltd (Hyderabad), Modi Naturals (Delhi), Gokul Refoils and Solvent Ltd (Sidhpur), Vijay Solvex Ltd (Alwar) Gokul Agro Resources Ltd and N K Proteins Pvt Ltd (Ahmedabad), it said.
These companies have reduced the wholesale prices after the SEA appealed to its members to do the same to give relief to consumers from high prices during the festival season.
"The response from the industry is very encouraging," SEA President Atul Chaturvedi said in a statement.
They have already committed and reduced the wholesale bulk prices by Rs 4,000-7,000 per tonne (Rs 4-7 per litre) and others are also following to reduce the edible oil prices, the SEA said.
Chaturvedi said domestic soybean and groundnut crops are rebounding this year while initial reports of mustard sowing are very encouraging and expecting a bountiful rapeseed crop.
Apart from this, the world edible oil supply situation is improving which is likely to further cool down the international prices so that domestic prices in the ensuing marriage season come down, he added.
Domestic edible oil prices have shot up in tandem with the international market where rates have risen due to reduced availability of edible oils for food use following diversion for biofuel in Indonesia, Brazil and other countries.
India meets more than 60 per cent of its edible oils demand through imports. Any rise in global prices has a direct impact on local prices.
To check prices, the government took several measures including a sharp reduction in import duties in the second week of October, which the SEA said has helped control runaway prices and is now reflected in the domestic wholesale rates.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)