The Centre on Thursday, October 14 has ordered states to take appropriate steps 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 in pen and paper urged all major oil-producing states including Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Uttar Pradesh, West Bengal, Tamil Nadu, and Andhra Pradesh to follow the instructions thus commensurate levels in line with the import duty reductions. The duty reductions will be effective from October 14, 2021, up to March 14, 2022.
As per the press release by the Ministry of Consumer Affairs, Food and Public Distribution urged the state governments to cut down the basic duty in crude palm oil, crude soyabean oil, and crude sunflower oil from 2.5 per cent.
The Centre to provide 'immediate relief' to consumers from the sustained rise in prices of edible oils, especially during the festive season, directed the state governments to ensure the passing of full benefits of duty reduction by the Centre to the consumers.
"This would also help in bringing down the food inflation and provide relief to the common man by the reduction in the prices of edible oils by Rs 15-20 per kg approx," the Press release maintained.
The agricultural tax levy on these oils has been cut down from 20 per cent to 7.5 for crude palm oil and 5 per cent for crude soyabean oil and crude sunflower oil. The basic duty on RBD palmolein oil, refined soyabean Oil, refined soyabean, and refined soyabean and refined sunflower oil has been slashed to 17.5 per cent from the current 32.5 per cent, 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 per cent for RBD palmolein, refined soyabean oil and refined sunflower oil. This will benefit the consumers by Rs 15 to Rs 20 per kg of edible oils," said the release.