Govt reduces import duty to rein in prices of edible oils – Times of India

NEW DELHI: The government has reduced import duty on edible oils with immediate effect, which may cool down the prices of these key kitchen items. According to a finance ministry notification, the base import duty on crude palm oil has been reduced to 2.5% from 10%, while the tax on crude soyaoil and crude sunflower oil has been reduced to 2.5% from 7.5%.
With this reduction, the effective duty, which includes agri cess on crude palm oil, crude soyaoil and crude sunflower oil will come down to 24.75% from the earlier 30.25%. In case of refined palm oil, soyoil and sunflower oil, the effective duty will be 35.75% from 41.25%, according to a food ministry statement.
The fresh round of cuts could bring down the retail prices by Rs 4-5 per litre, said B V Mehta, executive director of Solvent Extractors Association (SEA). “The current domestic bullishness in edible oils is spearheaded by low arrival of mustard seed. In our meeting with the food secretary on Friday, we had suggested a reduction of import duty on rapeseed oil in line with soya and sunflower oil or even a little lower as it will have desired salutary effect on runaway mustard oil prices. This will also go a long way in cooling all edible oil prices as globally edible oil prices have started showing weakness,” he added.
According to SEA, total import of vegetable oils during November 2020 to July 2021 fell by 2% to 96,54,636 tonnes, compared to 98,25,433 tonnes during the corresponding period of the previous oil year (November-October).