Edible oil prices set to fall further next month

NEW DELHI: Edible oil makers in India are set to further pass on the benefits of softening global rates to end consumers with Indonesia scrapping its export levy for all palm oil products until August 31.
The development comes close on the heels of the government urging companies to ensure reduction in maximum retail price of edible oils by Rs 15 with immediate effect. The correction is expected to hit retail shelves by early next month.
“Any shipment that started before July 15 is most probably going to reach Indian shores by July 25. So, there may not be any immediate impact this month,” said Angshu Mallick, MD & CEO at Adani Wilmar. “In addition, we may witness a hike in domestic crude palm oil prices in Indonesia by $50-100. That said, the development means prices are softening and all benefits are being passed on to Indian consumers. ”
Several Indian edible oil manufacturers, including Adani Wilmar, Mother Dairy and Emami Agrotech, undertook Rs 10-15 price cuts across oil categories last month.
“Indian prices will reflect global trends,” said Sudhakar Rao Desai, president at Indian Vegetable Oil Producers Association (IVPA) and CEO at Emami Agrotech.