Govt cuts basic duty on edible oils

November 6, 2021 42 Views No Comment

Spl. Correspondent NEW DELHI, NOV 6 (NPN) : In a bid to reign in continuous rise in the cooking oil prices, the Centre has cut the basic duty on crude palm oil, crude soyabean oil and crude sunflower oil from 2.5% to nil.

According to the Ministry of Consumer Affairs, Food & Public Distribution, the agri-cess on those oils has been brought down from 20% to 7.5% for crude palm oil and 5% for crude soyabean oil and crude sunflower oil.

Following the reduction, the total duty is 7.5% for crude palm oil and 5% 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% from the current 32.5%.

Before reduction, the agricultural infrastructure cess on all forms of crude edible oils was 20%. Post reduction, the effective duty on crude palm oil will be 8.25%, crude soyabean oil and crude sunflower oil will be 5.5% each.

To control prices of edible oils, the government has rationalised import duties on palm oil, sunflower oil and soyabean oil, futures trading in mustard oil on NCDEX has been suspended and stock limits have been imposed. Prices have been reduced to give relief to consumers during festival season.

According to the ministry, the edible oil prices are still higher than a year ago but there has been a declining trend from October onwards. “Despite international commodity prices being high, interventions have been taken by Central Government along with State Governments’ pro active involvement have led to reduction in prices of edible oils,” it said.

Retail edible oil prices drop (PTI adds): Edible oil prices in the major retail markets across the country have declined by Rs 5-20 per kg after various measures, including an import duty cut, by the government, Food Secretary Sudhansu Pandey said on Friday.

“The government has taken a number of steps to ensure consumers get relief from high prices. We are happy to share the trend from 167 centres.

Edible oil prices have declined quite significantly in the range of Rs 5 and 20 per kg in the major retail markets across the country,” Pandey said during a press briefing.

For instance, retail palm oil price in Delhi declined by Rs 5 to Rs 133/kg on November 3 from Rs 139/kg, while it fell by Rs 18 to Rs 122/kg from Rs 140/kg in Aligarh, Uttar Pradesh, while by Rs 7 to Rs 125/kg in Cuddalore, Tamil Nadu from Rs 132/kg in the said period, he said.

Even retail price of groundnut oil declined by Rs Rs 5-10/kg, while soyabean oil by Rs 5-11/kg, and sunflower oil by Rs 5-20/kg between October 31 and November 3, he added.

In the case of mustard oil, the Secretary said, “we have not seen a significant reduction in prices,” but the steps taken by the government including import duty rationalisation will have an impact on prices of mustard oil as well.

Domestic edible oil prices have soared in tandem with the global prices which shot up due to reduced availability of edible oils for food use following diversion for biofuel in Indonesia, Brazil and other countries.

Source: http://www.nagalandpost.com/govt-cuts-basic-duty-on-edible-oils/243924.html