Edible Price: The central government has taken an ‘unprecedented’ step to provide relief from inflation in edible oils. The government has ‘halved’ the import duty on crude edible oils. This ‘far-sighted’ decision is expected to bring a ‘significant reduction’ in the prices of major edible oils like palm oil, soybean oil, and sunflower oil, which will provide ‘direct relief’ to the common public. Let’s know the full details of this ‘influential’ step of the government, and how it will positively affect your pocket.
Big Cut in Import Duty
The government has reduced the basic customs duty on crude palm oil, soybean oil, and sunflower oil from 20% to a ‘straight’ 10%. This is an ‘unbelievable’ change. Apart from this, the total effective import duty including Agriculture Infrastructure Cess (AIDC) and Social Welfare Surcharge has now come down from 27.5% to ‘only’ 16.5%. This ‘big’ change will certainly bring down the prices of edible oils in the retail market.
Why did the government take this decision
In the last few months, a ‘sharp’ rise was seen in the prices of edible oils in the country. According to inflation data, inflation of edible oils increased by 17.4% year-on-year. In May, mustard oil prices rose by 25% to ₹170 per liter, while palm oil became 34% more expensive.
Sunflower oil had become 30% more expensive and soybean oil 18% more expensive. The common public was being badly affected by this ‘unbearable’ inflation, given which the government took this ‘decisive’ step.
Reason for increase in edible oils
Various ‘global factors’ are responsible for the rise in edible oils. For example:
The supply of sunflower oil has been continuously affected due to the ongoing conflict between Russia and Ukraine.
Soybean crops in Brazil and Argentina have been damaged due to weather.
Indonesia and Malaysia, the largest palm oil producers, have imposed several restrictions on their exports.
These complex global circumstances have boosted the prices of edible oils in India.
Benefits to both industry and consumers
Experts say that reducing the import duty will reduce the prices of edible oils in the retail market and provide relief to consumers. Executive Director of Solvent Extractors Association of India B.V. Mehta welcomed this decision wholeheartedly and said that this decision is beneficial for both consumers and the refining industry. This is a commendable step by the government which will help in bringing economic stability.