The central government is set to pass on the benefits of import duty cut "immediately" to consumers this festive season. The Union government has already waived off the basic customs duty on crude varieties of palm, sunflower and soyabean oils. In order to control the rising edible oil prices the duty charges on refined edible oils have also been slashed.
The basic duty on crude palm oil, crude soyabean oil and crude sunflower oil has been reduced from 2.5% to nil. The agri-cess has also been slashed from 20% to 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%.
In a statement, the ministry of consumer affairs, food and public distribution said, "Post reduction, the effective duty on crude palm oil will be 8.25%, for crude soyabean oil and crude sunflower oil will be 5.5% each from earlier 22.5% for crude palm oil, crude sunflower oil, crude soyabean oil and 32.5% for RBD palmolein, refined soyabean oil and refined sunflower oil". Further, the ministry added that the duty reduction will be effective from October 14, 2021 to March 31, 2022.
The ministry also said, "The direction states that the State government has to now 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 Rs 15-20 per kg (approx)."
"The total domestic demand of edible oils in the country is around 250 LMT per year. India imports almost 60% of the total edible oil consumed in a year. The domestic prices of edible oil depends on the international crude oil prices", reported News18.
As reported by PTI, Executive director, Solvent Extractors’ Association of India (SEA), B V Mehta said, "The government has slashed import duties on edible oils because of high retail prices in the domestic market and the festive season. The retail prices of refined palm oil can can come down by Rs 8-9 a litre while that of refined sunflower and soyabean oil can come down by Rs 12-15/litre post this duty cut. Harvesting of soyabean and groundnuts has started. The decision to reduce import duties may bring down market prices and lower price realisation by farmers."