Edible oil prices likely to ease by December: official

But govt. unlikely to reduce import duties after arrival of domestic crop, says Food Secretary

Soaring edible oil prices are likely to soften by December as international commodity futures show a declining trend and the arrivals of domestic oilseed crops, Food Secretary Sudhanshu Pandey said on Friday. However, he indicated that the government would be constrained from further import duty cuts to reduce oil prices as it needs to augment its own resources which have also been affected by COVID. Retail prices of edible oils have risen about 64% over the last year, driven by surging global prices, and lower domestic production of soybean which is India’s largest oilseed crop. However, Mr. Pandey expressed confidence that the spike is over. “December futures for soybean and palm oil are showing marginally declining trends. So at least we can expect that there will be no more rise in prices,” Mr. Pandey told journalists, adding that the arrivals of domestic soybean crop and the rabi season mustard crop would also help to soften prices. “Hopefully, prices should remain under control. There will be a decline, but not a very dramatic decline because global commodity pressures are still there.”