Edible oil sector seeks revision of weightage in WPI
Mon Feb 22 2021
With the change in the consumption pattern of edible oils
over the years, stakeholders are seeking revision of weightage for edible oil
in WPI (wholesale price index).
According to Solvent Extractors’ Association (SEA) of India,
the current per capita consumption of edible oil is estimated between 16.5 and
17.5 kg per annum. According to it, Gujarat and Maharashtra have a higher level
of per capita consumption compared to developing States. Similarly, people from
rich and upper middle class consume much larger quantum of oils and fats when
compared to poorer sections of society.
It feels that the India’s edible oils consumption is
projected to rise between 2 and 3 per cent per annum in the next 5-10 years
depending upon economic growth and population increase in the country.
In a letter to the members of SEA, Atul Chaturvedi, its
President, said that weightage for edible oils in WPI, fixed in 2011-12, is
2.64293 per cent under food articles.
“We understand the weightage is based on consumption pattern
and average price. The consumption pattern has totally changed in the last few
years. There is a wide variation in consumption pattern of various oils within
the edible oil group and its proportionate weightage. We have requested the
Ministry of Consumer Affairs Food and Public Distribution to examine and review
the weightage of edible oil in WPI due to changes in consumption pattern and
also the prices in the last few years,” he said.
Consumption study
Chaturvedi said the surveys conducted by National Institute
of Nutrition indicated that consumption of oils and fats is highly skewed. In
this context, it is necessary to generate authentic data on per-capita
consumption of edible oils in the country in various regions, income groups
variations from season to season, socio-economic classifications etc. The basic
objective is to generate realistic data to the extent possible that will help
the stakeholders understand the demand projection in the coming years for
calibrating their responses.
“We have requested the Ministry of Food and Public
Distribution to undertake the survey to estimate per capita consumption of
edible oils covering entire India. As a responsible Association we have offered
to collaborate in this endeavour,” he said.
Global price
Asked if the global price rise for edible oils is also a
reason for seeking a revision of weightage in WPI, BV Mehta, Executive Director
of SEA, told BusinessLine that it has got nothing to do with local operations
or spike in prices.
A look at the SEA data shows that the price of palm oil has
gained about 60 per cent year-on-year, while that of soyabean de-gummed or
crude oil 40 per cent, and sunflower oil 72 per cent.
Source: https://www.thehindubusinessline.com/