Government seeks answers from food-oil companies on price hike

New Delhi| The government has sought answers from oil companies on the sudden increase in retail prices of edible oils. A senior Food Ministry official on Friday, the industry has been asked why prices are rising despite the government’s instructions to keep retail prices stable during the festive season. The Ministry claims that the imported stock will easily last for 45-50 days at low duty. Processors should therefore avoid raising maximum retail prices. The price increase comes at a time when the festive season is near and demand will increase.

According to the Centre, there are about 3 million tones of stocks of edible oils imported at low duty. This is sufficient for 45 to 50 days of household consumption. The decision to increase import duty is part of the government’s ongoing efforts to promote domestic oilseed farmers, the Food Ministry said.

The government had announced an increase in basic customs duty on various edible oils from 14 September. Major edible oil organizations have been advised to ensure that the price of oil is kept soft until the availability of imported edible oil reserves at zero per cent and 12.5 per cent basic customs duty (BCD).