New Delhi: The government has reduced the import duty on edible oils with immediate effect, which may bring down the prices of these key cooking items. As per the notification of the Finance Ministry, the base import duty on crude palm oil has been reduced from 10% to 2.5%, while the tax on crude soya oil and crude sunflower oil has been reduced from 7.5% to 2.5%.
With this reduction, the effective duty, which includes agricultural cess on crude palm oil, crude soya oil and crude sunflower oil, will come down to 24.75 per cent from the earlier 30.25 per cent. According to a statement by the Food Ministry, the effective duty would be 41.25% to 35.75 per cent in the case of refined palm oil, soya oil and sunflower oil.
Retail prices may come down by Rs 4-5 per liter with the latest round of cuts Biwi Mehta, executive director of Solvent Extractors Association (sea) “The reason for the current domestic spurt in edible oils is lesser arrivals of mustard seeds. In our meeting with the Food Secretary on Friday, we had suggested reduction or marginal reduction in import duty on rapeseed oil in line with soya and sunflower oil as this would have the desired beneficial effect on mustard oil prices. This will also go a long way in cooling the prices of all edible oil as the global edible oil prices have started showing weakness,” he said.
According to SEA, total imports of vegetable oils fell by 2% to 96,54,636 tonnes during November 2020 to July 2021 as compared to 98,25,433 tonnes during the same period of the previous oil year (November-October).
With this reduction, the effective duty, which includes agricultural cess on crude palm oil, crude soya oil and crude sunflower oil, will come down to 24.75 per cent from the earlier 30.25 per cent. According to a statement by the Food Ministry, the effective duty would be 41.25% to 35.75 per cent in the case of refined palm oil, soya oil and sunflower oil.
Retail prices may come down by Rs 4-5 per liter with the latest round of cuts Biwi Mehta, executive director of Solvent Extractors Association (sea) “The reason for the current domestic spurt in edible oils is lesser arrivals of mustard seeds. In our meeting with the Food Secretary on Friday, we had suggested reduction or marginal reduction in import duty on rapeseed oil in line with soya and sunflower oil as this would have the desired beneficial effect on mustard oil prices. This will also go a long way in cooling the prices of all edible oil as the global edible oil prices have started showing weakness,” he said.
According to SEA, total imports of vegetable oils fell by 2% to 96,54,636 tonnes during November 2020 to July 2021 as compared to 98,25,433 tonnes during the same period of the previous oil year (November-October).
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