India is likely to lower the effective import duty on edible oils to provide some respite to households from rising prices.
The government is considering reducing the effective import duty, which includes cess and other charges, on crude palm, soya and sunflower oil to 24.75% from 30.25% and on refined palm and soya oil to 31.75% from 41.25% now.
“This is a crackdown on food inflation and a step to ensure that prices during the festive season remain under control,” said an official in the know of the development.
The move comes in the wake of prices of mustard, vanaspati, soya and palm oil having increased almost 30% while that of sunflower oil by more than 40% over the last year.
Oil and fats retail inflation in July was 32.53% compared to 6.65% in January.
India is the largest importer of vegetable oils and above 65% of the domestic demand is met through imports. New Delhi buys palm oil from Indonesia and Malaysia while soya oil and sunflower oil are imported from Argentina, Brazil, Ukraine and Russia.
“While there is short-term dependence on imports, there is also an understanding to reduce the prices of cooking oil,” the official said.
Source:economictimes.com