Prices for cooking oil with the exception of mustard dip after the government cut base tariffs, cess
Prices of cooking oil except mustard dip after government cut basic tariffs, cease | Photo credit: Twitter
The prices of all edible oils except mustard oil have been reduced after the government reduced the base tariff on crude palm oil, crude soybean oil and sunflower oil crude from 2.5% to zero in order to suppress a continuous rise in cooking oil prices for the past one years.
In addition, agriculture on these oils has been reduced from 20% to 7.5% for crude palm oil and 5% for crude soybean oil and crude sunflower oil. The total duty is now 7.5% for crude palm oil and 5% for crude soybean oil and crude sunflower oil.
The base duty on RBD palmolein oil, refined soybean oil and refined sunflower oil has been reduced to 17.5% from the current 32.5%. Before reduction, the agricultural infrastructure cess on all forms of crude edible oils was 20%. After the reduction, the effective duty on crude palm oil will be 8.25%, crude soybean oil and crude sunflower oil will each be 5.5%.
To control the prices of edible oils, the government rationalized import tariffs on palm oil, sunflower oil and soybean oil, mustard oil futures trade on NCDEX was suspended and stock limits were imposed.
Major edible oil players including Adani Willmar and Ruchi industries have reduced wholesale prices by Rs. 4 -7 per liter. Prices have been reduced to provide relief to consumers during the festival season. Other players who have reduced wholesale prices for edible oils are Gemini Edibles & Fats India, Hyderabad, Modi Naturals, Delhi, Gokul Re-foils and Solvent, Vijay Solvex, Gokul Agro Resources and NK Proteins.
Although international commodity prices are high, interventions have been taken through the proactive involvement of central and state governments that have led to lower prices for edible oils. The prices of edibles are higher than a year ago, but from October there was a downward trend. The government is taking measures to improve the production of secondary edible oils, especially rice bran oil, in order to reduce dependence on imports.