Standard rate of duty on edible oil slashed

In order to ensure availability of edible oil to consumers at fair prices, the Union Government has further reduced the standard rate of duty on Crude Palm Oil, Crude Soyabean oil and Crude Sunflower Oil to 2.5 per cent and the standard rate of duty on Refined Palm Oils, Refined Soyabean oil and Refined Sunflower Oil to 32.5 per cent with immediate effect. The agri-cess for Crude Palm Oil has been increased from 17.5 per cent to 20 per cent.
It may be noted that the International prices and thereby domestic prices of edible oils have been ruling high during 2021-22 which is a cause of serious concern from inflation as well as consumer’s point of view. Import duty on edible oils is one of the important factors that impacted landed cost of edible oils and thereby domestic prices.With a view to mitigate the rise in these prices, the government had taken a series of steps between February and August this year. They included rationalization of import duty, amending the import policy of Refined Palm Oils from restricted to free, reducing the standard rate of duty on Crude Soyabean Oil, Crude Sunflower Oil, Refined Soyabean Oil and Sunflower oil, facilitation at various ports by government agencies and speeding up clearances of consignments of imported edible oils which were delayed due to COVID-19.
Food and Public Distribution Ministry said, the duty cuts already made amount to an estimated 3,500 crore rupees in a full year. With the current and latest reduced import duty worth 1,100 crore rupees in full year, total direct value of benefits expected to be passed on to the consumers, in terms of duties given up by the government is four thousand 600 crore rupees.