Center cuts basic duty on edible oil to reduce retail prices

The agriculture cess on these oils has been reduced from 20% to 7.5% for crude palm oil and 5% for crude soybean oil and crude sunflower oil, the Finance Ministry said in a statement. Basic duty on RBD Palmolein Oil, Refined Soyabean and Refined Sunflower Oil has been reduced to 17.5 per cent from the existing 32.5%.

Before the cut, the Agricultural Infrastructure Cess on all forms of crude edible oils was 20%. After the reduction, the effective duty on crude palm oil will be 8.25%, crude soybean oil and crude sunflower oil at 5.5% each.

The government further said, “In order to control the prices of edible oils, the government has rationalized import duty on palm oil, sunflower oil and soybean oil, suspension of futures trading in mustard oil on NCDEX and stock limits. has been implemented.”

Besides, to provide relief to consumers during the festive season, major edible oil players including Adani Wilmar and Ruchi Soya Industries have cut wholesale prices. ₹Industry body Solvent Extractors Association (SEA) said earlier this week that 4-7 per liter and other companies are also expected to follow suit.

Other players who have reduced wholesale rates of edible oils are Gemini Edibles & Fats India Pvt Ltd (Hyderabad), Modi Naturals (Delhi), Gokul Refoil & Solvent Ltd (Siddhapur), Vijay Solvex Ltd (Alwar), Gokul Agro Resources Ltd and NK Huh. Proteins Pvt Ltd (Ahmedabad), it said. These companies have reduced the wholesale prices after SEA appealed to its members to do so to give relief to the consumers from the high prices during the festive season.

Other companies that have reduced wholesale prices of edible oils include Gemini Edibles & Fats India, Hyderabad, Modi Naturals, Delhi, Gokul Re-Foil & Solvent, Vijay Solvex, Gokul Agro Resources and NK Proteins.

Despite the high international commodity prices, the central government has intervened and the active participation of the state governments has brought down the prices of edible oils.

Food prices are higher than a year ago period but there was a declining trend since October. The government is taking steps to improve the production of secondary edible oils, especially rice bran oil, to reduce dependence on imports.