Centre asks eight States to slash edible oil prices

Union Government has written a letter to eight state governments seeking reduction of edible oils prices. It is directed that the prices of edible oils are brought down post import duty reduction.

New Delhi: The 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, as per press release. The letter is written to Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Uttar Pradesh, West Bengal, Tamil Nadu and Andhra Pradesh which are major oil-producing states.

The State governments are urged 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. It is estimated that the prices of edible oils would be brought down by Rs.15-20 per kg (approx).

The basic duty on crude palm oil, crude soyabean oil and crude sunflower oil has been brought down from 2.5% to nil by the Union Government. The agri-cess on these oils has been brought down 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%.

The duty reduction will be effective from October 14, 2021 up to March 31, 2022. The agricultural infrastructure cess on all crude edible oils was 20% till now. 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.

Thus duty has been slashed considerably to Nil for Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower and 17.5% for RBD Palmolein, Refined Soyabean Oil and Refined Sunflower Oil. This step of the Government of India may cool down the domestic prices of Edible Oils in India. This will benefit the consumers by Rs. 15 to 20 per kg of edible oils.