Centre slashes basic duty on various Crude oils; value depreciates from 2.5% to nil

In a massive move to provide relief to the common man, the Government of India has decided to cut the basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil from 2.5% to nil. Since the last year, oil prices have seen a continuous rise and this decision by the Central Government during the festive season is sure to bring joy and relief to many who had demanded the price drop. To control the prices of edible oils, the government has rationalised import duties on palm oil, sunflower oil and soyabean oil. Also, futures trading in mustard oil on NCDEX has been suspended and stock limits have been imposed. 

State-wise prices for Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil:

This decision to reduce the prices of crude oils comes despite high international commodity prices. The aforementioned step has only been successful post active interventions taken up by the Union Government in collaboration with the State government. Edible oil prices have witnessed a decline in prices post-October with the government taking proactive steps to improve the production of secondary edible oils, especially rice bran oil to reduce the import dependence.

What are crude price changes?

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%. Before reduction, the agricultural infrastructure cess on all forms of Crude Edible Oils was 20%. Post reduction, the effective duty on Crude Palm Oil will be 8.25%, and Crude Soyabean Oil and Crude Sunflower Oil will be 5.5% each.

As govt reduces oil prices, industry follows footsteps

Major edible Oil players including Adani Willmar and Ruchi industries have cut wholesale prices by four to seven rupees per litre. The other players that have reduced the wholesale prices of edible oils are Hyderabad's Gemini Edibles & Fats India, Delhi's Modi Naturals, Gokul Re-foils and Solvent, Vijay Solvex, Gokul Agro Resources and N.K Proteins.

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