Prices of Edible Oil Take a Nosedive

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Prices of Edible Oil Take a Nosedive

July 14: The price of edible oil took a nosedive in the domestic market of Nepal after the Government of India reduced the import duty on unrefined oil. Due to the latest decision of the Indian government, Nepali entrepreneurs have not been able to export edible oil produced in the country and have decided to reduced the price.

The price of soybean oil, which had reached as high as Rs 3,200 per carton, has now come down by Rs 700 to Rs 2,500 in the last one week. The price of sunflower oil as well went down by Rs 600 per cartoon. Sunflower oil, which used to be sold at Rs 3,200 per cartoon, is now available at Rs 2,600.

Nepali oil producers had been exporting refined oil to India at excessive prices until India reduced the tariffs on oil imports. With the reduction in import duty, India started producing oil at a lower cost than Nepal, which is the reason why the export from here has almost come to a standstill. Entrepreneurs say that even Nepali consumers in the border areas are in a position to buy edible oil from India rather than Nepal due to the competitive price. India reduced import duty on unrefined oil in an attempt to control inflation.

According to Suresh Rungata, operator of OCB Food in Birgunj, due to this, India started producing edible oil at a lower cost than Nepal.

According to him, India, which has been levying tax of up to 40 percent on crude oil imports, now reduced it to just 3 percent.

“Exports from Nepal came to a standstill after India reduced import duty on raw materials. When we could not export, our stock increased and the price went down,” said Rungata.

While on the other hands, Amul Kaji Tuladhar, president of the Nepal Retailers Association said that the entrepreneurs may have been compelled to reduce the price due to the pressure to pay interest on bank loans at a time when the income from exports is declining. He says that retailers and consumers will be affected when big entrepreneurs and traders fluctuate the price arbitrarily. He expressed that handing over the responsibility of import and sale of essential food items to government bodies such as the Salt Trading Corporation will help in controlling the market price to some extent.

Consumers are relieved after the skyrocketing oil prices started falling. Rajesh Maharjan, who visited a retail market in Kalimati on Wednesday, said he felt some relief after getting oil at a lower price than before. He had bought soybean oil at about Rs 320 per liter about two weeks ago. He said that he bought the same oil at Rs 300 per liter on Wednesday.


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