Festive Cheer! Cooking Oil Set To Become Cheaper, Here’s Why
New Delhi: With the central government asking states to pass on the benefits of import duty cut ‘immediately’ to consumers this festive season, cooking oil is set to become cheaper soon.
Earlier, the Union government scrapped the basic customs duty on crude varieties of palm, sunflower and soyabean oils. The duty charges on refined edible oils has also been cut to control the rising edible oil prices.
The basic duty on crude palm oil, crude soyabean oil and crude sunflower oil has been reduced from 2.5 per cent to nil. The agri-cess has also been slashed from 20 per cent to 7.5 per cent for crude palm oil and 5 per cent for crude soyabean oil and crude sunflower oil.
The duty reduction will be effective from October 14, 2021 to March 31, 2022, according to the ministry.
The Centre wrote letters to the governments of major oil producing states including Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Uttar Pradesh, West Bengal, Tamil Nadu and Andhra Pradesh to take “appropriate and immediate action” to bring down rising oil prices. The state governments must ensure that full benefits of import duty reduction must be passed on to the end consumers. After slashing the import duty, the prices of edible oils are likely to become cheaper by Rs 15-20 per kg.
“The direction states that the State government has to now 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. This would also help in bringing down the food inflation and provide relief to ordinary consumers by reduction in the prices of edible oils by Rs 15-20 per kg (approx),” the ministry added.
“The government has slashed import duties on edible oils because of high retail prices in the domestic market and the festive season. The retail prices of refined palm oil can come down by Rs 8-9 a litre while that of refined sunflower and soyabean oil can come down by Rs 12-15/litre post this duty cut,” B V Mehta, Solvent Extractors’ Association of India (SEA) executive director told PTI.
“Harvesting of soyabean and groundnuts has started. The decision to reduce import duties may bring down market prices and lower price realisation by farmers,” he further added.
Also read: Which Cooking Oil Is Good For Your Health
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