The government on Friday said retail prices of cooking oils, except mustard oil, have fallen in the domestic market despite a surge in global rates on the back of its decision to reduce import duties on crude and refined edible oils. International prices of edible oils have gone up in the range of 1.95 per cent to 7.17 per cent after the import duty reduction, according to an official statement.
After the duty reduction (with effect from September 11) on imported edible oils, domestic retail prices have reduced in the range of 0.22 per cent to 1.83 per cent.
Taking into the account of rise in global prices, the net impact on rates is decline in the range of 3.26 per cent to 8.58 per cent since September 10.
"Necessary policy intervention by Central Government with reference to duty reduction is proving to be beneficial for the general consumers," the statement said.
However, it added that "mustard oil is purely domestic oil and its prices are expected to soften with number of other measures the government is contemplating."
To check prices and increase domestic supply, the Centre has reduced import duties on edible oils. It has also taken steps against hoarding and asked wholesalers, millers and refiners to provide details of their stock on a web portal.
Even retailers have been asked to prominently display the rates of branded edible oils so that consumers can make a choice.
Last month, the government had slashed the base custom duties on palm oil, soyoil and sunflower oil.
The base import tax on crude palm oil has been reduced to 2.5 per cent from 10 per cent, while the tax on crude soyoil and crude sunflower oil has been slashed to 2.5 per cent from 7.5 per cent.
With the reduction, the effective duty on crude palm oil, crude soyoil and crude sunflower oil came down to 24.75 per cent, whereas the effective duty on refined palm oil, soyoil and sunflower oil fell to 35.75 per cent.
On other food items, the government said the prices of rice and wheat have decreased in the market despite increase in the MSP (minimum support price).
The retail prices of gram, tur, urad and moong have also fallen in the last few months.
The all-India average retail prices of potato decreased by 44.77 per cent over the year, while rates of onion and tomato fell by 17.09 per cent and 22.83 per cent, respectively, in the last one year.
Source:economictimes.com