According to a government statement released on Friday, retail prices for cooking oils in India have dropped despite a sharp surge in global rates due to the government’s reduction of import duties on crude and refined edible oils. Domestic retail prices have fallen between 0.22 per cent and 1.83 per cent after the duty reduction, which came into effect from September 11, on imported edible oils. According to an official statement, prices of edible oils have increased by 1.95 per cent to 7.17 per cent since import duties were reduced.
Since September 10, the net effect from the rise in global prices is a drop of between 3.26 and 8.58 percent in rates.
“Necessary policy intervention by Central Government with reference to duty reduction is proving to be beneficial for the general consumers,” goverment stated.
The report added however that, “mustard oil is purely domestic oil and its prices are expected to soften with number of other measures the government is contemplating.”
Indian government has lowered import duties on edible oils to reduce prices and increase domestic supply. Furthermore, it has taken steps to prevent hoarding by requiring wholesalers, millers, and refineries to provide details of their stock on a goverment web portal.
The product rates of branded edible oils need to be prominently displayed by retailers so that consumers can make an informed decision.
Palm oil, soybean oil, and sunflower oil base customs duties were reduced last month.
Crude palm oil’s base import tax has been reduced to 2.5 per cent from 10 per cent. Crude soybean oil and crude sunflower oil are taxed at 2.5 per cent instead of 7.5 per cent.
As a result of the reduction in duty, crude palm oil, crude soy oil, and crude sunflower oil will now have an effective duty rate of 24.75 whereas refined palm oil, soy oil, and sunflower oil will have an effective duty rate of 35.75 %.
