The government on Saturday said the base custom duty on palm, soybean and sunflower oils has been further reduced to control rising edible oil prices during the festive season, causing a revenue loss of Rs 1,100 crore.
The industry said the move may bring down retail prices by Rs 4-5 per litre.
According to a release by Consumer Affairs, Food and Public Distribution, customs duty has been reduced on both crude and refined variants of these three cooking 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.
According to the notification of the Finance Ministry, the base import tax on crude palm oil has been reduced from 10 percent to 2.5 percent, while the tax on crude soybean oil and crude sunflower oil has been reduced from 7.5 percent to 2.5 percent.
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.
The move comes amid an unabated rise in edible oil prices in India – which imports 60 per cent of its demand – despite several recent government measures.
The Ministry of Food and Consumer Affairs said that due to international prices, “domestic prices of edible oils have been at higher levels during 2021-22 which is a cause of serious concern from consumer point of view along with inflation.”
It said that 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 custom duty on these cooking oils will result in an estimated revenue loss of Rs 1,100 crore.
And with an additional revenue loss of Rs 3,500 crore from the earlier reduction in customs duty on these oils, the government will incur a total loss of Rs 4,600 crore, which is expected to be passed on to consumers, it added.
BV Mehta, executive director of the Solvent Extractors Association of India (SEA), told PTI that the latest round of cuts “may bring down retail prices by Rs 4-5 per litre.”
It is also generally seen that after reducing India’s import duty, prices in the international market become tighter, so the real impact may be only Rs 2-3 per litre, he added and added that the government Should have reduced the import duty on mustard (rapeseed) oil. Well to cool the prices.
Retail edible oil prices in the country have risen in the range of 41 to 50 per cent in the last one year.
In order to control the prices of edible oils, the ministry has directed the states to take action against hoarding not only at the level of wholesalers, millers and refiners but also the retailers to prominently display the prices of all edible oil brands. also asked for. for the benefit of consumers.
“… some states have already notified that they (retailers) will only have to display at what rate it is available. Then it is the consumer’s choice whether to brand x or y depending on his preference. Wants to buy,” Union Food Secretary Sudhanshu Pandey told the media on Friday after a meeting with state officials and industry stakeholders.
He had said that consumers can opt for cheaper options and brands will also be under pressure to reduce the prices, adding that the state governments will implement the requirement of displaying the prices.
The total imports of vegetable oils (edible and non-edible oils) declined by 2 per cent to 96,54,636 tonnes during November 2020 to July 2021 as compared to 98,25,433 tonnes in the corresponding period of the previous oil year (November-October). According to SEA data.
Edible oil is India’s third largest imported commodity after crude oil and gold.
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$("#disqus_thread1" + id).toggle();
};*/
//$(".main-rhs2393141").theiaStickySidebar();
var prev_content_height = $(content_selector).height();
//$(function() {
var layout = $(content_selector);
var st = 0;
///});
}
}
});
/*}
};*/
})(jQuery);
.