Duty slashed for edible oils, but what happened to store prices?

The ministry of Consumer Affairs has directed edible oil companies to immediately pass on the benefits of a recent halving of import duty to consumers, and warned them of action against non-compliance, two people aware of the matter said on condition of anonymity.

- Dhirendra Kumar & Vijay C. Roy

On the other hand, industry experts Mint spoke with attributed the delay to supply chain challenges and a lag for imported consignments to reflect on retail shelves, and expect price reductions to happen by late June.

"They have been clearly instructed to reduce the prices of edible oil so that the benefits of the duty cut can reach consumers," said the first person cited above, adding that the ministry has communicated this in a recent meeting with industry leaders.

"Those who fail to comply will face action, as the government reduces duties to benefit consumers by cooling domestic inflation and easing pressure on household budgets—not to enable oil companies to make extra profits," said the second person.

The Centre had reduced basic customs duty on imported crude sunflower, soybean and palm oil from 20% to 10% on 30 May.