Edible Oil Companies Defy Government Order, Consumers Bear The Brunt In India 

The edible oil companies have shockingly flouted the central government’s directive, hiking prices by Rs 20 per liter despite instructions to maintain existing rates. This blatant disregard for the government’s order has left consumers facing the consequences.

The Union Ministry of Food and Civil Supplies had specifically asked edible oil companies not to sell 30 lakh tonnes of imported oil at increased rates. However, companies chose to disregard this instruction, taking advantage of the import duty hike to inflate prices.

Consumers are bearing the brunt of the price hike, particularly with the festive season approaching. The increased costs will affect household budgets, making essential edible oils unaffordable for many. Small businesses and restaurants will also be impacted, potentially leading to higher food prices.

The price hike is substantial, with rates rising across various edible oils:

• Soybeans: 124 (current rate), 107 (previous rate)
• Palm Oil: 120 (current rate), 105 (previous rate)
• Sunflower Oil: 138 (current rate), 118 (previous rate)

The timing of the price hike couldn’t be worse, with Dussehra and Diwali just around the corner. Consumers were expecting relief from the government’s efforts to control prices, but the companies’ defiance has dashed those hopes.

“This move by edible oil companies is unfortunate and will hurt consumers,” said Bharat Mehta, executive president of The Solvent Extractors Association of India. “The government must take strict action to ensure compliance with their directives.”

The central government is yet to respond to the companies’ defiance. Consumers await clarification on whether the government will take action against the companies or provide relief to mitigate the price hike’s impact.

The edible oil companies’ decision to flout the government’s order has left consumers facing higher prices and uncertainty ahead of the festive season.

Sancheti College

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