After the government’s decision to lower the standard tariff rate on edible oils a week ago, a huge difference in daily wholesale prices was observed, the Consumer Affairs Ministry said on Friday.
Daily wholesale prices for packaged palm oil fell 2.50%, followed by sesame oil 2.08%, coconut oil 1.72%, packaged peanut oil 1.38%, packaged sunflower oil 1.30%, packaged mustard oil 0.97%, packaged vanaspati 0.71% and oil from 0.68% packaged soybean.
Read also: Center cuts import taxes on vegetable oils amid rising prices
“Based on the interaction with all states and edible oil industry associations, the need for greater transparency arose. As a follow-up action, the Food and Public Distribution Department is creating a web portal to monitor stocks of edible oils / oilseeds on a weekly basis in the country, ”the ministry statement said. .
From the table below, it is clear that the wholesale price of edible oils has shown a downward trend over the past week.
To control the rise in edible oil prices during the festival season, the government further reduced basic tariffs on palm, soybean and sunflower oils, resulting in a loss of revenue of 1,100 crore of rupees, he said on September 11.
The move, depending on the industry, could lower retail prices by 4-5 rupees per liter. Tariffs have been reduced on crude and refined variants of these three cooking oils.
But agriculture on crude palm oil has been increased from 17.5 percent to 20 percent. The Ministry of Finance had notified the drop in customs duties for these oils from September 11 until further notice.
In accordance with the notification from the Ministry of Finance, the basic import tax on crude palm oil was reduced to 2.5 percent from 10 percent, while the tax on crude soybean oil and Crude sunflower oil has been reduced to 2.5 percent from 7.5 percent.
Read also: Edible oil retail prices to start falling from December: Food Secretary Sudhanshu Pandey
With this reduction, the effective duty on crude palm oil, crude soybean oil and crude sunflower oil will increase to 24.75 percent, while the effective duty on refined palm oil, l soybean oil and sunflower oil will be 35.75 percent.
The move came against a backdrop of steadily rising edible oil prices in India – which imports 60% of its demand – despite several recent government measures.
Import duties on edible oils are one of the important factors that have affected the landed cost of edible oils and hence domestic prices.
It was reduced a few months ago and has been reduced further now to stimulate domestic supply and control price increases.
According to the Ministry of Consumer Affairs, the current reduction in tariffs on these cooking oils will result in an estimated loss of revenue of Rs 1,100 crore.
And with an additional loss of revenue estimated at Rs 3,500 crore resulting from the earlier reduction in tariffs on these oils, the government will bear a total loss of Rs 4,600 crore which is expected to be passed on to consumers, the government said. ministry.