Lok Sabha Question No. 2192 (UNSTARRED), answered on 2025-03-12
Subject: Spike in Edible Oil Prices
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri P V Midhun Reddy

## GOVERNMENT OF INDIA MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED  QUESTION  NO.2192

## TO BE ANSWERED ON 12TH MARCH, 2025

## SPIKE IN EDIBLE OIL PRICES

## 2192. SHRI PV  MIDHUN  REDDY:

Will the Minister of CONSUMER  AFFAIRS,  FOOD  AND PUBLIC DISTRIBUTION 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): fhe  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 Domestic prices are largely governed by International prices
- (ii) The Government had increased the Basic Customs Duty (BCD)  on various edible oils  to  support domestic oilseed farmers and oilseed prices. The  Basic Customs Duty  on Crude Soybean Oil,  Crude Palm Oil,  and Crude Sunflower  Oil  was raised from  0% to 20%, making the effective duty on crude oils to 27.5%. Additionally,  the BCD on Refined Palnl Oil,  Refined  Sunflower  Oil,  and Refined  Soybean Oil  was increased from  12.5% to  32.5% making the effective duty on Refined oils as 35.75% w.e.f.  14th September 2024.
- (iii) There was simultaneously significant  increase in the international prices of imported edible oils resulting  in  higher landed cost, in  addition to the increase due to duty hike. (detail in Annexure-II).
- (c): To control the domestic prices, Government had issued advisory to leading Edible Oil  Associations to maintain MRP  of edible oils. Further, the Government closely monitors 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.

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Annexure I

## ANNEXURE REFERRED TO  IN  REPLY TO  PART  (a) OF  THE  UNSTARRED QUESTION NO.2192 FOR ANSWER ON 12.03.2025 IN THE LOK  SABHA.

| Edible Oil Prices   | Edible Oil Prices          | Edible Oil Prices          | Edible Oil Prices          | Edible Oil Prices          | Edible Oil Prices          |
|---------------------|----------------------------|----------------------------|----------------------------|----------------------------|----------------------------|
| Commodities         | Retail Price (Rs./Ltr.)    | Retail Price (Rs./Ltr.)    | Retail Price (Rs./Ltr.)    | Retail Price (Rs./Ltr.)    | Retail Price (Rs./Ltr.)    |
|                     | Date                       | ONEMONTH                   | ONEYEAR                    |                            |                            |
|                     | 06-03-2025                 | 06-02-2025                 | 06-03-2024                 | 1 Month                    | 1 Year                     |
| Groundnut Oil       | 174.9                      | 175.8                      | 172.0                      | +}.SI '%,                  | 1,67 %)                    |
| Mustard Oil         | 153.1                      | 153.6                      | 122.9                      | -{}.29 %,                  | 24,56%                     |
| Soyabean Oil        | 132.3                      | 131.2                      | 111.6                      | 0.83%                      | 18,50%                     |
| Sunflower Oil       | 143.6                      | 140.9                      | 111.7                      | 1 ,93%                     | 28,56l}//a                 |
| RBD Palmolein       | 125.3                      | 123 .3                     | 89.8                       | 1 ,69%                     | 39,54t%                    |
| Commodities         | Wholesale Price (Rs./Ltr.) | Wholesale Price (Rs./Ltr.) | Wholesale Price (Rs./Ltr.) | Wholesale Price (Rs./Ltr.) | Wholesale Price (Rs./Ltr.) |
|                     | Date                       | ONEMONTH                   | ONE YEAR                   |                            |                            |
|                     | 06-03-2025                 | 06-02-2025                 | 06-03-2024                 | 1 Month                    | 1 Year                     |
| Groundnut Oil       | 164.9                      | 165.0                      | 159.9                      | .it.iI$:A,                 | 3,09%                      |
| Mustard Oil         | 144.3                      | 144.4                      | 114.8                      | -a.f) (I i?;               | 25,731%                    |
| Soyabean Oil        | 123.9                      | 122.2                      | 103.1                      | 1 ,43%                     | 20. 18%                    |
| Sunflower Oil       | 136.4                      | 133.1                      | 104.1                      | 2.44%                      | 3 1.i101%                  |
| RBD Palmolein       | 118.6                      | 116.1                      | 83.1                       | 2. 13 %,                   | 42,761%                    |
| Source- DoCA        | Source- DoCA               | Source- DoCA               | Source- DoCA               | Source- DoCA               | Source- DoCA               |

#####

## ANNEXURE REFERRED TO IN REPLY TO PART (b) OF THE UNSTARRED QUESTIONNO.2192  FOR ANSWER ON 12.03.2025 IN THE LOK 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                     | Date                            | 0                               |                                 |                                 |                                 |
| Commodities                     | 06-03-2025                      | 06-02-2025                      | 06-03-2024                      | o                               |                                 |
| Crude Soyabean Oil              | 1040                            | 1020                            | 875                             | 1                               |                                 |
| Crude Sunflower Oil             | 1130                            | 1100                            | 855                             | 2.73'z,                         | 1 32.16%)                       |
| Crude Palm Oil                  | 1150                            | 1120                            | 935                             | 2.68t%                          | 22.99%                          |
| RBD Palmolein                   | 1100                            | 1070                            | 895                             | 2.8tl IZ)                       | 22,9 1 tH}                      |
| Source: SEAI                    | Source: SEAI                    | Source: SEAI                    | Source: SEAI                    | Source: SEAI                    | Source: SEAI                    |