Lok Sabha Question No. 349 (UNSTARRED), answered on 2024-11-27
Subject: Spike in Edible Oil Prices
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Ramasahayam Raghuram Reddy

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO.349

TO BE ANSWERED ON 27TH NOVEMBER,  2024

## SPIKE IN  EDIBLE  OIL  PRICES

## 349 SHRI RAMASAHAYAM RAGHURAM  REDDY:

Will  the Minister of  CONSUMER AFFAIRS, FOOD AND  PUBLIC DISTRIBUTION WitnT wr8,  ala  aM VTdqfiq f&6WT 4g be pleased to state:

- (a) whether the Government has recognized the factors that have led to the spike in edible oil prices recently;
- (b) if  so, the details thereof; and
- (c) the details of  measures taken by the Government to ease the burden on small-scale food businesses as household consumers?

## ANSWER

MINISTER OF STATE FOR MINISTRY  OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)

- (a) : Yes Sir. (detail in Annexure-I)
- (b): The increase in domestic prices are due to following  factors;
- (i) Domestic production of edible oils is unable to meet domestic demand.  The short fall which is around 57%  is met through imports.  The international prices of  imported edible oils are showing a significant increasing trend resulting in higher landed cost. (detail in Annexure-II)
- (ii) Further, in  order to  harmonize the  interests of  farmers, processors and consumers, the Government reviews and calibrates the duty structure of  edible oils from time to time. The Government  has  increased  the  Basic Customs  Duty (BCD) on  various edible  oils  to  support domestic oilseed farmers and oilseed prices. Effective  on  September 14, 2024, the Basic Customs Duty on Crude Soybean Oil, Crude Palm Oil, and Crude Sunflower Oil has been raised from  0% to 20%, making the effective duty on crude oils to 27.5%. Additionally, the BCD on Refined Palm Oil,  Refined  Sunflower  Oil,  and Refined  Soybean Oil  has been increased from  12.5% to  32.5% making the effective duty on Refined oils as 35.75%.

These adjustments are part of  the  government's  ongoing  efforts to bolster domestic oilseed farmers, especially with  the new soybean and groundnut crops expected  to  arrive in markets from October 2024.

(c): To  control  the domestic prices,  Government had issued advisory to  leading Edible  Oil Associations to maintain MRP of edible oil  till  the availability  of edible oil  stocks imported at lower duty (i.e 0% &  12.5% Basic Customs Duty).

The Government is closely monitoring the international and domestic prices of Edible Oils and keeping in  mind the interest of  the consumers, domestic farmers and edible oil  industry, the Government makes necessary policy  interventions to keep the prices affordable.

88###

## ANNEXURE REFERRED TO IN  REPLY TO PART (a) OF THE UNSTARRED QUESTION NO.349 FOR ANSWER ON 27.11.2024 IN THE RAJYA SABHA.

|                  | Edible Oil Prices         | Edible Oil Prices         | Edible Oil Prices         | Edible Oil Prices         | Edible Oil Prices         | Edible Oil Prices         |
|------------------|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|
|                  | Retail                    | Retail                    |                           |                           |                           |                           |
|                  | 20/11/2024                | 13/11/2024                | 20 /10/2024               | 20 / 11/2023              | M=th                      | 1 Year                    |
| Groundnut Oil    | 178.0                     | 178.0                     | 175.2                     | 175.3                     | 1 1.61%,                  | I 1.53'z)                 |
| Mustard Oil      | 152.5                     | 152.0                     | 148.9                     | 22                        |                           |                           |
| Soyabean Oil     | 129.9                     | 129.0                     | 125.6                     | 1                         | 1                         |                           |
| Sunflower Oil    | 136.4                     | 134.6                     | 128.6                     | 112.5                     | 1 6.13%,                  | 1 21.29%,                 |
| RBD Palmolein    | 117.9                     | 117.4                     | 1 112.o                   | 1 90.4                    | 5.31%,                    | 30.39%,                   |
|                  | molesale Price (Rs./Lfr.) | molesale Price (Rs./Lfr.) | molesale Price (Rs./Lfr.) | molesale Price (Rs./Lfr.) | molesale Price (Rs./Lfr.) | molesale Price (Rs./Lfr.) |
| Commodities      | E                         | E                         |                           | 11b[f#1C JII!IIIL         | 1S11                      | 1S11                      |
|                  | 20/11/2024                | 13/11/2024                | 20 /10/2024               | 20 / 11/2023              | M=th                      | 1 Year                    |
|                  |                           |                           |                           |                           |                           | +                         |
| s                | :                         |                           |                           |                           |                           |                           |
| Soyabean Oil 1 r | 121.4                     | 1 120.6                   | 1 117.5                   | 1 103.7                   | 1 3.33%                   | 1 17.10%                  |
| Su n: =v e r     | 129+ 2F                   |                           |                           |                           |                           |                           |
| RBD Palmolein    | 111.8                     | 110.7                     | 106.1                     | 83.7                      | 5.37%,                    | 133.60%,                  |
| Source- DoCA     | Source- DoCA              | Source- DoCA              | Source- DoCA              | Source- DoCA              | Source- DoCA              | Source- DoCA              |

Annexure ll

## ANNEXURE REFERRED TO IN  REPLY TO PART (a) OF THE UNSTARRED QUESTION NO.349 FOR ANSWER ON 27.11.2024 IN THE RAJYA  SABHA.

| International Prices (USD/MT)   | International Prices (USD/MT)   | International Prices (USD/MT)   | International Prices (USD/MT)   | International Prices (USD/MT)   | International Prices (USD/MT)   |
|---------------------------------|---------------------------------|---------------------------------|---------------------------------|---------------------------------|---------------------------------|
| Commodities                     | 1                               | 01                              |                                 |                                 |                                 |
| Commodities                     | 20/11/2024                      | 20/10/2024                      | 20/11/2023                      | 1 Month                         | 1 Year                          |
| Crude SoyabeanM                 | 1155                            | 1085                            | 1020                            | 6.45%)                          | 13,24%                          |
| Crude SunnaH                    | 1195                            | 1085                            | 925                             | 10,14%                          | 29,191%                         |
| Crude Palm Oil                  | 1235                            | 1100                            | 880                             | 12,27(%                         | 40,34%)                         |
| RBD Palmolein                   | 1195                            | 1065                            | 865                             | 12,2 1(%                        | 38, 151%                        |
| o                               | o                               | o                               | o                               | o                               | o                               |