Centre directs states to reduce edible oil prices

The Central government on Thursday has directed the states to ensure that the prices of edible oils are brought down to commensurate levels in line with the import duty reductions.

The Department of Food and Public Distribution wrote to all major oil-producing states including Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Uttar Pradesh, West Bengal, Tamil Nadu and Andhra Pradesh to ensure that the prices of Edible Oils are brought down to commensurate levels in line with the import duty reductions. The duty reduction will be effective from October 14, 2021 upto March 14, 2022. According to a press release by the Ministry of Consumer Affairs, Food & Public Distribution, the government slashed the basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil from 2.5 per cent to Nil. The Centre in the letter directed the state governments to ensure the passing on of full benefits of duty reduction by the Centre to the consumer to provide “immediate relief” from the ongoing high prices of the 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 the reduction in the prices of edible oils by Rs.15-20 per kg (approx),” said the press release.

The Agri-cess on these Oils has been brought down from 20% to 7.5% for Crude Palm Oil and 5% for Crude Soyabean Oil and Crude Sunflower Oil. The basic duty on RBD Palmolein Oil, Refined Soyabean and Refined Sunflower Oil has been slashed to 17.5% from the current 32.5%, according to the release.

“The duty has been slashed considerably to Nil for Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower and 17.5% for RBD Palmolein, Refined Soyabean Oil and Refined Sunflower Oil. This will benefit the consumers by Rs. 15 to 20 per Kg of Edible Oils,” said the release.