Edible Oil Prices Rise Despite Government's Warning

The food department has urged organisations in the edible oil industry to refrain from increasing prices during the holiday season.

However, prices for major oils have risen between Rs 8 and Rs 22 per litre.

The department emphasised the importance of maintaining stable prices, citing an adequate supply of older stock that had been imported with low or no duty.

Recent government reports show that prices for essential edible oils have surged in the past two weeks following a rise in import duties on soybean, sunflower, and palm oil, which took effect on September 13.

For instance, the average cost of mustard oil increased from Rs 141 per litre to Rs 152, and palm oil prices climbed from Rs 100 to Rs 122 on Wednesday.

Additionally, retail prices for soybean and sunflower oil went up by approximately Rs 9 to Rs 10 per litre during this period.

In response to the significant price increases, the food department requested clarification from industry associations, reiterating previous recommendations to keep maximum retail prices unchanged until the existing lower-duty stock was sold out.

In a letter sent last week to solvent extractors and vegetable oil producers, the department highlighted the substantial price increases following the announcement of higher import duties, which contradicted the government's aim to stabilise prices during the festive season.

The letter stated that there was no valid reason for raising domestic prices until the older stock was fully depleted.

In reply, the Solvent Extractors Association has encouraged its members to focus on consumer interests and refrain from price increases during this festive period.