Duty on cooking oil prices cut from 2.5 % to ease retail price
The Union Government has cut the basic duty on crude palm oil, crude soyabean oil, and crude sunflower oil from 2.5 per cent to nil in a bid to reign in the continuous rise in the cooking oil prices which started last year.
By Newsmeter Network Published on 5 Nov 2021 2:22 PM GMT
New Delhi: The Union Government has cut the basic duty on crude palm oil, crude soyabean oil, and crude sunflower oil from 2.5 per cent to nil in a bid to reign in the continuous rise in the cooking oil prices which started last year. The agri-cess on these oils has been brought down from 20 per cent to 7.5 per cent for crude palm oil and 5 per cent for crude soyabean oil and crude sunflower oil.
Consequent to the above reduction, the total duty is 7.5 per cent for crude palm oil and 5 per cent for crude soyabean oil and crude sunflower oil. The basic duty on RBD palmolein oil, refined soyabean, and refined sunflower oil has been slashed to 17.5 per cent from the current 32.5 per cent.
Before reduction, the agricultural infrastructure cess on all forms of crude edible oils was 20 per cent. Post reduction, the effective duty on crude palm oil will be 8.25 per cent, crude soyabean oil and crude sunflower oil will be 5.5 per cent each.
To control prices of edible oils, the government has rationalized import duties on palm oil, sunflower oil, and soyabean oil, and futures trading in mustard oil on NCDEX has been suspended and stock limits have been imposed.
Major edible oils players including Adani Willmar and Ruchi industries have cut wholesale prices by Rs 4 to Rs 7 per litre. The prices have been reduced to give relief to consumers during the festival season. The other players that have reduced the wholesale prices of edible oils are Gemini Edibles and Fats India, Hyderabad, Modi Naturals, Delhi, Gokul Re-foils and Solvent, Vijay Solvex, Gokul Agro Resources and NK Proteins.
Despite international commodity prices being high, interventions have been taken by the Central Government along with State Governments' pro-active involvement have led to a reduction in prices of edible oils. The edible oils prices are higher than a year ago but from October onwards there has been a declining trend. The government is taking steps to improve the production of secondary edible oils, especially rice bran oil to reduce the dependence on imports.
