World prices have a strong influence on the Indian market because the country imports nearly 70% of its annual consumption of 23.5 million tonnes of edible oil.
“Weak demand in China, which is one of the largest consumers, has resulted in lower prices on the world market and simultaneously on the domestic market,” said Angshu Mallick, deputy general manager of Adani Wilmar.
“We will pass this lower price on to consumers, which will be reflected in branded cooking oil sticker packs in the coming week.”
Mallick said the consumer will pay 10% less – Rs 8 per liter for palm oil and soybean oil – and 7% less at Rs 5 per liter for sunflower oil.
Current wholesale prices of brand soybean and palm oil are Rs 78 per liter, while those of sunflower oil are Rs 82 per liter. “With the spread of the coronavirus to other parts of the world, we can expect another drop in prices of Rs 3 per liter,” said Mallick.
Sudhakar Desai, President of the Indian Vegetable Oil Producers Association, says edible oil prices on the international market have dropped 15-22% in the past 50 days due to weak global demand, the impact coronaviruses and a long liquidation. Palm oil prices fell 20% and soybean and sunflower prices 15% during this period. Desai said prices for mustard oil have dropped 13% while prices for rice bran oil have dropped 20% in the past two months.