Take steps to control edible oil prices: Center to states
The Department of Food and Public Distribution has written to all the major oil producing states to take appropriate and immediate action to ensure that the prices of edible oils are brought down to the level commensurate with the reduction in import duty.
The Center has written a letter in this regard to Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Uttar Pradesh, West Bengal, Tamil Nadu and Andhra Pradesh, all major oil producing states, a department release said on Thursday.
The letter mentions that the concerned state government will have to ensure that the full benefit of duty cut by the Center to provide immediate relief from the prevailing high prices of edible oils is passed on to the consumers, especially during the festive season.
“This will help in bringing down the food inflation and provide relief to the common consumers by reducing the prices of edible oils by Rs 15-20 per kg (approximately),” the release said.
To reignite the steady rise in cooking oil prices since the past one year, the Center has reduced the basic duty on crude palm oil, crude soybean oil and crude sunflower oil from 2.5 per cent to zero.
Agricultural cess on these oils has been reduced from 20 per cent to 7.5 per cent for crude palm oil and 5 per cent for crude soybean oil and crude sunflower oil. The basic duty on RBD palmolein oil, refined soybean and refined sunflower oil has been reduced to 17.5 per cent from the existing 32.5 per cent.
The fee reduction will be effective from October 14, 2021 to March 31, 2022.
Before Thursday’s cut, the agriculture infrastructure cess on all crude edible oils was 20 per cent. After the reduction, the effective duty on Crude Palm Oil will be 8.25 per cent, while for Crude Soyabean Oil and Crude Sunflower Oil it will be 5.5 per cent for Crude Palm Oil, Crude Sunflower Oil, Crude Soyabean from the earlier 22.5 per cent. oil and 32.5 percent for RBD palmolein, refined soybean oil and refined sunflower oil.
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