Amid soaring prices, Centre cuts basic duties on edible oil

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The central government has reduced the basic duty on crude palm oil, crude soybean oil and crude sunflower oil from 2.5 per cent to zero to reignite the steady rise in cooking oil prices since the past one year, the Ministry of Consumer Affairs, Food and Agriculture said. Public Distribution said on Friday.

New Delhi: The central government has reduced the basic duty on crude palm oil, crude soybean oil and crude sunflower oil from 2.5 per cent to zero to reignite the steady rise in cooking oil prices since the past one year, the Ministry of Consumer Affairs, Food and Agriculture said. Public Distribution said on Friday.

Agricultural cess on these oils has been reduced from 20 per cent to 7.5 per cent for crude palm oil and 5 per cent for crude soybean oil and crude sunflower oil, read a statement.

As a result of the above deduction, the total duty is 7.5 per cent for crude palm oil and 5 per cent for crude soybean oil and crude sunflower oil. The basic duty on RBD palmolein oil, refined soybean and refined sunflower oil has been reduced to 17.5 per cent from the existing 32.5 per cent, the statement said.

Before the cut, the Agricultural Infrastructure Cess on all types of crude edible oils was 20 per cent. After the cut, the effective duty will be 8.25 per cent on crude palm oil, 5.5 per cent on crude soybean oil and crude sunflower oil.

To control the prices of edible oils, the government has rationalized import duty on palm oil, sunflower oil and soybean oil, suspended futures trading in mustard oil on NCDEX and imposed stock limits, the ministry said. has been given.

Major edible oil companies including Adani Wilmar and Ruchi Industries have cut wholesale prices by Rs 4-7 per litre. The prices have been reduced to give relief to the consumers during the festive season.

Other companies that have reduced wholesale prices of edible oils include Gemini Edibles & Fats India, Hyderabad, Modi Naturals, Delhi, Gokul Re-Foil & Solvent, Vijay Solvex, Gokul Agro Resources and NK Proteins.

According to the statement, food prices are higher than a year ago period but there was a declining trend since October. It said that the government is taking steps to improve the production of secondary edible oils, especially rice bran oil, to reduce dependence on imports.

First published:November 5, 2021, 6:12 pm

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