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Cooking Oil to Become Cheaper Soon as Govt Cuts Duty Charges

Cooking oil prices to become cheaper soon

Cooking oil prices to become cheaper soon

To bring some relief to the consumers amid rising inflation, the Union government cut the the duty charges on crude palm oil by 5 per cent.

Cooking oil is to become cheaper soon as the central government has decided to reduce the duty charged on crude palm oil. To bring some relief to the consumers amid rising inflation, the Union government cut the the duty charges on crude palm oil by 5 per cent. “The international prices of crude edible oil and refined palm oil were showing declining trend in prices over the past one month. Still, the prices of domestic refined palm oil and crude edible oil remained high. The Government, keeping in view the consumer interest due to rising prices of edible oil, has reduced the duty on CPO duty," said ministry of consumer affairs, food and public distribution said in a statement.

“Ministry of Finance vide Notification No. 34/2021-Customs dated 29th June, 2021 has cut duty on CPO to 10% from 15% w.e.f. 30th June, 2021 and this will remain in force up to and inclusive of the 30th September, 2021," the statement added.

After the duty cut, the tax rate on CPO will be 30.25% including additional agri-cess of 17.5% and social welfare cess of 10%. This reduction, in turn, will bring down the retail prices of edible oils. This reduction in charges will be applicable till September 30.

To cool down the prices of refined palm oil, Department of Food & Public Distribution (DFPD) also recommended removal of the restriction on import of RBD Palmolein. The group also put refined palm oil in the open general category of imports to support its availability at lower prices for the domestic consumer.  “… Department of Commerce vide Notification No. 10/2015-2020 dated 30th June, 2021 has issued revised import policy for Refined Bleached Deodorized (RBD) Palm Oil and RBD Palmolein by removing both from restricted to free category. This would be effective with immediate effect and for a period upto 31.12.2021," the Centre added. Among other steps, the Centre has adopted a mechanism where nodal offices of the customs department, FSSAI, plant quarantine division monitor the speedy clearance of food commodities like pulses and Crude Palm Oil (CPO) at shipping ports.

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The major edible oils consumed in India include mustard, soyabean, groundnut, sunflower sesame oil, niger seed, safflower seed, castor and linseed (primary source) and coconut, palm oil, cottonseed, rice bran, solvent extracted oil, tree and forest origin oil. The total domestic demand of edible oils in the country is around 250 LMT per year. India imports almost 60% of the total edible oil consumed in a year. The domestic prices of edible oil depends on the international crude oil prices.

“Making India ‘AtmaNirbhar’ in edible oils is our cherished goal and national oilseeds mission is committed to achieving it by aligning policies including foreign trade.The government will be monitoring the prices on a daily basis expects the industry to pass on full benefits to the consumers," the ministry added.

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first published:July 01, 2021, 08:45 IST