look news india
The central government has recently increased the import duty on edible oil. After which edible oil processors have been asked not to increase the retail price. This will ensure that edible oil sent at lower duty will be available in sufficient stock. The Food Ministry said that easily imported stock at low duty will last for 45 to 50 days. And for this, processors should avoid increasing the maximum retail price i.e. MRP. Last week, the Center had increased the basic customs duty on various edible oils to support domestic oilseed prices.
The government increased the tax
The basic customs duty on crude soybean oil, crude palm oil and crude sunflower oil has been increased from zero to 20 percent from the 14th of this month. This makes the effective duty on crude oil 27.5 percent. Apart from this, the basic customs duty on refined oil, refined sunflower oil and refined soybean oil has been increased from 12.5 percent to 32.5 percent. Due to which the effective duty on refined oils has increased to 35.75 percent.
There is no shortage of stock
On Tuesday, the Food Secretary chaired a meeting of three different departments to discuss pricing strategy with representatives. A government statement then said that edible oil associations have been advised to take a decision that the MRP of each oil should be kept unchanged till availability of imported edible oil stock at zero per cent and 12.5 per cent basic BCD and immediately take up the issue with their members.
The stock will last for 45 to 50 days
The statement said that the central government is also aware that about 30 lakh tonnes of edible oil imported at low duty is in stock. There is enough for 45 to 50 days of domestic consumption. India imports a large amount of edible oils to meet domestic demand. Dependence on imports is more than 50 percent of the total requirements. The Food Ministry said that the decision to increase the import duty will encourage domestic oilseed farmers.