To curb prices during festivals, the government further reduced customs duty on edible oils

To curb prices during festivals, the government further reduced customs duty on edible oils

New Delhi, Sep 11 (PTI) The government has cut basic customs duty on palm oil, soya oil and sunflower oil to counter the rising prices of edible oils during the festive season. This will result in loss of revenue of about Rs 1,100 crore to the government. The government has given this information on Saturday.

Regarding this initiative of the government, the oil industry believes that it can reduce the retail prices of edible oils by Rs 4-5 per liter.

According to a release by the Department of Consumer Affairs, Food and Public Distribution, customs duty has been reduced on both crude and refined types of these three edible oils. But the agriculture cess on crude palm oil has been increased from 17.5 per cent to 20 per cent.

The Finance Ministry has notified reduction in customs duty of these oils with effect from September 11 till further orders.

In a notification issued late on Friday, the Finance Ministry said that the import duty on crude palm oil has been reduced from 10 per cent to 2.5 per cent, while on crude soya oil and crude sunflower oil it has been reduced from 7.5 per cent to 2.5 per cent. Is.

With this reduction, the effective duty on crude palm oil, crude soybean oil and crude sunflower oil will come down to 24.75 per cent, while the effective duty on refined palm oil, soya oil and sunflower oil will be 35.75 per cent.

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This step has been taken in the midst of an unabated increase in the prices of edible oil in India in the recent past despite all the government measures. India meets about 60 per cent of its edible oil demand from imports.

The Ministry of Food and Consumer Affairs said that domestic prices of edible oils have remained elevated during the year 2021-22 due to the rise in international prices, which is a matter of serious concern to the consumers along with inflation.

It said that the import duty on edible oils is one of the important factors which affected the landed cost and domestic prices of edible oils.

Import duty on edible oils was reduced a few months back and has now been further reduced to boost domestic supply and check price rise.

According to the ministry, the current reduction in customs duty on these edible oils is expected to result in a revenue loss of Rs 1,100 crore. The ministry said the earlier cut in customs duty on these oils would result in a total loss of Rs 4,600 crore to the government, with an additional revenue loss of Rs 3,500 crore.

Solvent Extractors Association of India (SEA) Executive Director B.V. Mehta told PTI that the latest cut may bring down the retail prices of edible oils by Rs 4-5 per litre.

He said that it is also generally seen that after reducing India’s import duty, the prices in the international market go up, so the real impact of this cut on edible oil prices could be Rs 2 to 3 per litre.

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He said that the government should have also reduced the import duty of rapeseed (mustard variety) to bring down the edible oil prices.

Retail edible oil prices in the country have risen in the range of 41 to 50 per cent in the last one year.

He said the government should have reduced the import duty on mustard oil to bring down the prices. In the last few months, the Center has cut import duty on various edible oils and asked states to get stock details of edible oils and oilseeds from wholesalers, edible oil mill owners, refinery units and stockists. The retailers have also been asked to prominently display the prices of all edible oil brands for the benefit of the consumers.

“…some states have already notified that they (retailers) will have to display only At what rate edible oil is available. Then it is the consumer’s choice to purchase any brand based on his/her choice.

According to SEA, the total import of vegetable oils (edible and non-edible oils) during November-2020 to July-2021 declined by two per cent to 96,54,636 tonnes as compared to 96,54,636 tonnes in the corresponding period of the previous oil year (November-October). was 98,25,433 tonnes.

Edible oil ranks third in India’s imports after crude oil and gold.

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