Edible oil duties slashed to curb prices

Chennai: With prices in the retail market ruling high, the government has reduced the basic customs duty and agricultural cess on certain edible oils till March 31, 2022 to soften prices.

The basic customs duty on crude palm oil, crude soyabean oil and crude sunflower oil has been reduced from 2.5 per cent to nil. The agriculture cess levied on the basic customs duty has been cut from 20 per cent to 7.5 per cent for crude palm oil and to 5 per cent for crude soyabean oil and crude sunflower oil.

The basic customs duty on edible grade soyabean oil, edible grade sunflower oil, refined bleached deodorised (RBD) palm oil, RBD palm olein, RBD palm stearin and any palm oil other than crude palm oil has been reduced from 32.5 per cent to 17.5 per cent, the Central Bureau of Indirect Taxes and Customs said.

The government had earlier reduced the edible oil duties in June and then in August and September. However, retail prices still remained high.

Meanwhile, the festive demand saw edible oil imports rising to record high levels. Imports of edible oils rose 63 per cent to 16.98 lakh tonnes during September, setting a new record for a single month.