The Centre’s move to cut base import taxes on edible oils is likely to bring down prices by approximately ₹15-20 per kg
By Sudhir Kumar
Centre has written to States seeking action for ensuring that the prices of edible oils are brought down post import duty reduction for immediate relief of consumers.
Department of Food and Public Distribution has written to all major oil producing states to take appropriate and immediate action for ensuring that the prices of Edible Oils are brought down to commensurate levels in line with the import duty reductions. The letter has been written to Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Uttar Pradesh, West Bengal, Tamil Nadu and Andhra Pradesh which are major oil producing states.
Centre has directed the states to ensure that full benefit of duty reduction made by the Centre is passed on to the consumers in order to provide immediate relief from the prevailing high prices of Edible Oils, especially during the ensuing festival season. This would also help in bringing down the food inflation and provide relief to ordinary consumers by reduction in the prices of edible oils by 15 to 20 rupees per kilogram.
According to a central notification, imported crude palm oil, the most widely consumed of edible oils in the Indian market, will now be charged an agri infrastructure cess of 7.5 per cent, while unrefined soyabean and sunflower oils will attract a cess of 5 per cent, down from 20 per cent.
The lowering of the cess will bring down the effective customs duty on palm, soyabean and sunflower oils 8.5 per cent, 5.5 per cent and 5.5 per cent, respectively, according to the government’s notification.