Rates of edible oil contracts moved higher on Tuesday. Refined soy oil was last seen trading at Rs 1,326 per 10 kg, up by Rs 12.3 or 0.94 per cent.
The food ministry has sent a proposal to the Empowered Group of Ministers to review cooking oil prices, and a meeting may be called soon. Sources said a decision on import duty reduction may be taken in that meeting.
Since November 2020, the import duty applicable to edible oils has not been lowered. India meets 70 per cent of its demand for edible oils including palm oil through imports, primarily from Indonesia and Malaysia.
A import duty reduction may ease the prices of edible oils for consumers.
Soybean prices have risen 40 per cent so far this year. Lower supply and a drop in demand from China have boosted the rates of the commodity. At 5:02 pm, NCDEX soybean futures traded Rs 26 lower at Rs 6,430 per quintal.
In the last one year, mustard oil prices have nearly doubled. The rates of sunflower oil have risen up to 95 per cent, and those of peanut oil and soya oil by up to 50 per cent each.