- Earlier this month, when the government cut tariffs on palm, sunflower and soybean oils, it dropped healthy edible oils such as olive oil and olive pomace oil.
- These tax cuts have changed the price gap that exists between healthy and unhealthy oil options.
- Producers of healthy oil such as Modi Naturals and Marico are the victims of hefty import duties and pass them on to the consumer.
- Indians are already downgrading from brands to unbranded or local items when it comes to packaged food, now there will be a similar trend in
Indian households have been reeling for months under the stress of walks in edible oil – a key element that determines their thalinomics. This heavily imported food product has been hit by supply chain issues, export bans and more, but just a few weeks ago they started to cool down a bit, thanks to the global price drop.
A few companies like Adani Wilmar had also lowered the sticker price. The center has also moved to make it affordable again by
to cut import duties and asked the manufacturers to:
pass it on to the consumer up to ₹10-12 per litre.
These tax cuts will also offset the decline in the rupee value that will affect the economy of imported products. India is highly dependent on oilseed growers outside the country as it is the second largest in the world
customer and number one
importer of vegetable oil. It supplies 55-60% of its needs through imports.
“As global edible oil prices have fallen by 25-30% and the Indian government has also reduced tariffs on edible oils, the depreciation of the rupee against the dollar and its impact on local prices will therefore be offset. . That’s why we don’t see the price increase of edible oils in India due to the appreciation of the dollar against the rupee,” Akshay Modi, MD of Modi Naturals told https://gotechbusiness.com/ India.
According to recently released data from the Ministry of Statistics and Program Implementation, edible oil
prices are more than 9% higher than they were last year. After vegetables and herbs, oils and fats have seen the largest increase in inflation over the same period.
Healthy vs Unhealthy
While these tax cuts helped, they also changed the price gap that exists between healthy and unhealthy oil options. The government has introduced tax cuts on palm, sunflower and soybeans, and the center has cut out olive oil and olive-pomace oil, both of which are also imported. These two oils are considered the healthiest of all due to their antioxidant properties.
“When it comes to other healthy edible oils such as rice bran and olive pomace oil, excise taxes are still disproportionately high at 38.5%, leaving consumers with no healthy options to choose from. We urge the government to lower the excise tax on crudes from these sources, level the playing field and give consumers healthy options to choose from,” Modi told https://gotechbusiness.com/ India.
Oleev oil manufacturer Modi Naturals’ five liter olive pulp currently costs ₹2199. Dhara’s
As trends indicate, Indians are already down-trading brands to unbranded or local items when it comes to packaged foods. And it has already hit FMCG Major Marico. Its version of the healthy cooking oil brand, Saffola, fell by double digits in the quarter ended June 2022.
“Saffola oils were down double digits as they suffered from high domestic consumption in the base quarter and significant downtrading from the superpremium to the mass segment in edible oils,” the company said in a statement to the stock exchanges.
Marico has a range of healthy cooking oil options under the Weight Watchers, Total Pro Heart, and more brands. It also has cans of rice bran oil with other vegetable oils, providing a multitude of options for consumers looking for healthy options.