States told to ensure edible oil prices are brought down post import duty cut

Market


The union government has written to states seeking action for ensuring that the prices of edible oils are brought down post import duty reduction for immediate relief of consumers.

The government on Wednesday slashed import duty on edible oils to provide immediate relief to consumers, especially during festive season, as global commodity prices continue to surge. The CBDT in two seperate notifications slashed the basic customs duty and the agriculture and infrastructure development cess on specific edible oils.

The basic customs duty on crude palm oil, crude soya-bean oil and crude sunflower seed oil has been reduced from 2.5% to Nil. Crude palm oil also benefits from a sharp cut in agriculture cess from 20% to 7.5%.

Agriculture cess on both crude soya-bean oil and crude sunflower oil has been reduced from 20% to 5%. All the changes are effective from Thursday till the end of March 2022.

In a letter addressed to 8 major oil producing states, including Maharashtra, Gujarat, and others, the government reduction in duties would help in bringing down the food inflation and provide relief to ordinary consumers on edible oils by 15-20 per kg.

The basic duty on RBD palmolein oil, refined soyabean and refined sunflower oil has been slashed to 17.5% from the current 32.5%.

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