The central government has written to the states seeking action to ensure that the prices of edible oils are brought down after the reduction in import duty for immediate relief to the consumers.
The government on Wednesday slashed import duty on edible oils to provide immediate relief to consumers, especially during the festive season, as global commodity prices continue to rise. The CBDT in two separate notifications reduced basic customs duty and agriculture and infrastructure development cess on specific edible oils.
Basic customs duty on crude palm oil, crude soybean oil and crude sunflower seed oil has been reduced from 2.5% to zero. Crude palm oil has also benefited from a steep cut in agriculture cess from 20% to 7.5%.
Agriculture cess on both crude soybean oil and crude sunflower oil has been reduced from 20% to 5%. All changes are effective from Thursday through the end of March 2022.
In a letter addressed to 8 major oil producing states including Maharashtra, Gujarat and others, the reduction in duty by the government will help in bringing down food inflation and provide relief to common consumers on edible oils. ₹15-20 per kg.
The basic duty on RBD Palmolein Oil, Refined Soybean and Refined Sunflower Oil has been reduced to 17.5% from the existing 32.5%.
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