Liberalization has benefited the Indian oil consumer, though the beleaguered domestic edible oils industry is clamoring for protection. All major oils have ignored wholesale price index trends and actually become substantially cheaper over the last decade. In ‘91-92, the WPI for all commodities was 217.8, which has increased to 365.6 on December 11, ’99 – a 59.7 % rise over the prices prevailing nine years ago. However, according to industry estimates, the average prices of all the major edible oils have fallen by an average 28 %. For instance, industry estimates show that between ‘91-99, the average price of sunflower oil was only Rs. 30, 272/tonne, when the indicative prices based on the WPI ought to have been Rs. 52, 876/t. In fact, the price as on June 2 this year is even lower at Rs. 18,500/tonne, a further fall of 39 %. Similarly, rapeseed oil was available at an average price of Rs. 28, 277/t in the same period, when its index-linked price ought to have been Rs. 42,469/tonne. Currently, the price is even lower at Rs. 22,200/t, a fall of 21%. In soyabean oil, the difference is even more substantial because while the average price was only Rs. 27,914/t, the index linked price should have been Rs. 50,694/t. currently, it is ruling at Rs. 20,100/t, a drop of 28% over the average. . In groundnut oil, the average price has been Rs. 37,141/t, when the indicative price should have been Rs. 60,597/t. however, there has been no further fall between the average nine-year prices and the current actual price, industry estimates show. |
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