The closed-door meeting was attended by representatives of ITC, Ruchi Soya, Liberty Oil, Madhukant Group, Tapasya and a couple of top foreign importers, among others.

The price cut decided is as follow: Rs 24 per 10 kg for imported palmolein, Rs 25 per 10 kg on soyabean oil and Rs 27.50 per 10 kg for sunflower oil. But the time frame within which edible oils would be available to customers at reduced prices remains to be seen.

Edible oil prices have been soaring since early this year, first, on account of perceived shortage of rabi crop of oilseeds. Early last week (before the duty cut was announced), they had touched an all-time high level of Rs 400 to Rs 450-plus per 10 kg.

For example, palmolein had touched a high of Rs 440 per 10 kg.Currently, they are said to be ruling around Rs 365. Soya refined had jumped to Rs 430 (now ruling around Rs 405) and sunflower Rs 480 (Rs 455-Rs 60).

Earlier, in mid-April, the prices did dip for a brief span of couple of weeks, but again jumped after the cyclone hit the Kandla and adjoining port regions of Gujarat, one of the major suppliers of the edible oils. Since then, the prices have been rising uncontrollably. The government had been threatening to cut the import duty for edible oils since mid-March, which had a sobering effect on prices. However, it was only last week that the government finally announced the 10 per cent duty cut to 15 per cent.

This duty cut, therefore, forced some of the top 15 importers of edible oils to jointly consider cut in the end-price of edible oils.

"We have decided to pass on the benefit of duty cut to the end-users," said Deepak Shah, director, Madhukant Group, one of the major importers of edible oils. "We would thus ensure that, there would be no shortage ofedible oil supplies till the coming festive season and they will be available at reasonable price".

Accordingly, this step is likely to result in smooth availability of edible oils throughout the festival seasons hardly two months away.

Even in the international market, the palmolein prices had been jumping primarily because of the absence of Indian government's intervention in the form of duty cut.

In Malaysia, for example, palmolein had shoot up to around $680 per tonne. On Monday, it is reported to have opened at a high of $665 per tonne, but there were enough sellers at $650-$655 per tonne for August delivery. The prices are likely to soften further, traders say.

Meanwhile, in the Mumbai market, prices of imported palm oil declined sharply by Rs 12 to end at Rs 370 per 10 kg on heavy arrivals and supplies. Elsewhere, prices of castor oil, castorseed and castorseed September contract rallied on heavy offtake.

In the edible section, imported palm oil nosedived to Rs 370 from Rs 382, whilegroundnut oil eased to Rs 492 from Rs 493. However, groundnut bold remained steady at Rs 2060 per quintal.