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Center told states that customers should get the benefit of reduction in edible oil import duty

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Center told states that customers should get the benefit of reduction in edible oil import duty

New Delhi, Oct 14 (PTI) The central government on Thursday said retail edible oil prices are expected to come down by around Rs 15-20 per kg after the reduction in import duty. The Center directed the eight major producing states to ensure that this benefit is passed on to the consumers, so that they get relief from the increased oil prices during festivals.

On Wednesday, the government abolished basic customs duty on varieties of crude palm, sunflower and soybean oils and cut duty on refined edible oils to reduce retail prices of edible oils.

In a statement, the Food Ministry said, “This move of the government (reduction of import duty on edible oils) may bring down the domestic prices of edible oils in India. This will benefit the consumers by Rs 15 to 20 per kg of edible oils.

The ministry has written to all major edible oil producing states to take “appropriate and immediate action” to ensure that the prices of edible oils are brought to the level commensurate with the reduction in import duty.

Instructions have been issued to Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Uttar Pradesh, West Bengal, Tamil Nadu and Andhra Pradesh.

“…the State Government shall now ensure that the full benefit of the duty cut by the Center is passed on to the consumers, so as to provide immediate relief from the prevailing high prices of edible oils,” it said.

According to the ministry, this will also help in reducing food inflation and bring relief to the common consumers by reducing the prices of edible oils by about Rs 15-20 per kg.

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After deduction, the effective customs duty on crude palm oil is 8.25 per cent, while that on crude soybean oil and crude sunflower oil is 5.5 per cent. Earlier, the effective duty on these three raw materials was 24.75 per cent.

The reduction in import duty and cess effective from October 14, will be applicable till March 31, 2022.

Agricultural Infrastructure Development Cess (AIDC) on crude palm oil, crude soybean oil and crude sunflower oil has also been reduced.

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