The term insurance cover for the agents has been expanded from the existing range of Rs 3,000-10,000 rupees to Rs 25,000-150,000.
The Central government on Friday held a meeting with leading industry representatives, including the Solvent Extraction Association of India (SEAI) and the Indian Vegetable Oil Producers’ Association (IVPA) to discuss a further reduction in the retail prices of edible oils amidst a continued fall in global prices.
This was the second meeting convened within a month by the Department of Food and Public Distribution with the industry representatives.
The industry informed that the global prices of different edible oils have fallen by $ 150-200 per tonne in the last two months. Industry informed that they have reduced the MRP and will further reduce it shortly.
However, there is an element of time lag for reflection in the retail markets and the retail prices are soon expected to come down further.
Earlier also the Department convened a meeting with the leading edible oil associations and over a month the MRP of Refined Sunflower Oils and Refined Soybean Oil of some major brands have decreased by Rs 5-15 per litre.
Similar decrease has been done in the case of mustard oil and other edible oils as well. The reduction in oil prices came in the wake of the reduction of international prices and reduced import duty on edible oils making them cheaper. The industry was then advised to ensure that the entire benefit of the reduced international prices is passed on to the consumers invariably.
It was discussed in the meeting held today that the international prices of imported edible oils are continuing on a downward trend and therefore, the edible oil industry needs to ensure that the prices in the domestic market also drop commensurately.
This price drop has to be passed on expeditiously to the end consumers and not in a delayed manner as is observed now. The leading edible oil associations were advised to take up the issue with their members immediately and ensure that the MRP of major edible oils is reduced further by Rs 8-12 per litre, with immediate effect.
Price to distributors by the manufacturers and refiners also needs to be reduced with immediate effect so that the price drop is not diluted in any way.
It was also impressed upon that, whenever a reduction in price to distributors is made by the manufactures/refiners, the benefit should be passed on to the consumers by the industry and the Department may be kept informed on a regular basis. Some companies which have not reduced their prices and whose MRP is higher than other brands have also been advised to reduce their prices.