Cooking oil prices may fall after October 14, the government took this special measure

Cooking oil prices may fall after October 14, the government took this special measure

The government on Wednesday cut agricultural cess on crude varieties of palm oil, soybean oil and sunflower oil till March 2022. Apart from this, agriculture cess has also been cut on them. This is a move that will help in reducing the cooking oil prices and increase domestic availability during the festive season.

The Central Board of Indirect Taxes and Customs (CBIC) in a notification said that the duty cut will be effective from October 14 and will remain in force till March 31, 2022. Crude palm oil will now attract an Agricultural Infrastructure Development Cess (AIDC) of 7.5 per cent, while it will be 5 per cent for crude soybean oil and crude sunflower oil.

After this deduction, the effective customs duty on crude varieties of palm oil, soybean oil and sunflower oil will be 8.25 per cent, 5.5 per cent and 5.5 per cent respectively. Besides, the basic customs duty on refined varieties of sunflower, soybean, palmolein and palm oil has been reduced to 17.5 per cent from the existing 32.5 per cent.

BV Mehta, executive director, Solvent Extractors Association of India, said the government has reduced import duty on edible oils due to increase in retail prices in the domestic market and festive season.

Explain that the Center has reduced the import duty on edible oils to check the prices of cooking oil and increase the domestic supply. Steps have also been taken against hoarding and wholesalers, mill owners and refiners have been asked to make available their stock details on a web portal.

Even retailers have been asked to prominently display the rates of branded edible oils so that consumers can choose the edible oil of their choice. Last month, the government reduced basic customs duty on palm oil, soya oil and sunflower oil. The basic import duty on crude palm oil has been reduced from 10 per cent to 2.5 per cent, while on crude soya oil and crude sunflower oil, it has been reduced from 7.5 per cent to 2.5 per cent.

(with language input)