Good news on edible oil prices! Rates to cool down, govt writes letter to 8 states –See this chart


New Delhi: The Centre has written to various State governments seeking action for ensuring that the prices of Edible Oils are brought down post import duty reduction for immediate relief of consumers. Slashing import duty will bring relief to consumers especially during festive season.

The letter has been written to 8 major oil producing states — Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Uttar Pradesh, West Bengal, Tamil Nadu & Andhra Pradesh which are major oil producing states.

The Department of Food and Public Distribution has written to all major oil producing states to take appropriate and immediate action for ensuring that the prices of Edible Oils are brought down to commensurate levels in line with the import duty reductions.

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).
In a bid to reign in continuous rise in the cooking oil prices since past one year, the Central Government has slashed the basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil from 2.5% to Nil. 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%.

The duty reduction is effective from 14th October, 2021 upto 31st March, 2022. Before this reduction, the agricultural infrastructure cess on all Crude Edible Oils was 20%. Post reduction, the effective duty on Crude Palm Oil will be 8.25%, for Crude Soyabean Oil and Crude Sunflower Oil will be 5.5% each from earlier 22.5% for Crude Palm Oil, Crude Sunflower Oil, Crude Soyabean Oil and 32.5% for RBD Palmolein, Refined Soyabean Oil and Refined Sunflower Oil.

The movement of the duty structure on regular review of prices of essential commodities is given in the graph below:-

Thus 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 step of the Government of India may cool down the domestic prices of Edible Oils in India. This will benefit the consumers by Rs. 15 to 20 per Kg of Edible Oils.

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