NEW DELHI: Edible oil makers in India will find it easier to 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.
While the development comes close on the heels of the government urging companies to ensure reduction in maximum retail price (MRP) of edible oils by Rs 15 with immediate effect, the correction is expected to hit retail shelves by early next month.
“Any shipment that has 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 also witness a hike in domestic crude palm oil prices in Indonesia by $50-100. That said, the development means prices are softening and all the benefits are being passed on to Indian consumers,” he said.
Several Indian edible oil manufacturers including Adani Wilmar, Mother Dairy and Emami Agrotech undertook Rs 10-15 price cuts across oil categories last month reflecting international rates and government intervention. Prices are set to decrease further.
“Although the effect of easing of export restrictions on palm oil has been present in the market for some time, Indian prices will reflect global trends,” said Sudhakar Rao Desai, president at Indian Vegetable Oil Producers Association (IVPA) and CEO at Emami Agrotech, maker of Healthy & Tasty of edible oils. “We expect a similar trend in soya oil, too, with Indian consumers getting all the benefits.”
Oil makers had hiked prices with sunflower oil supplies being impacted due to the ongoing Russia-Ukraine conflict. Both countries account for a major chunk of global inventory. India’s demand for crude palm oil, too, ran into a roadblock as Indonesia had put in place curbs on exports.
Stay informed with the latest Business News on Times of India. Explore the list of Bank Holidays, stay informed about Budget 2025, discover the new Income Tax Slabs, and use the Income Tax Calculator for hassle-free tax planning.
Unlock Investment Potential: Enroll in ET's Stock Valuation Workshop - Batch 3. Secure Your Spot Now!