Centre reduces the rate of duty on Crude Palm Oil, Crude Soyabean oil and Crude Sunflower Oil (Economics, Governance, GS-2,3))

13 Sep Centre reduces the rate of duty on Crude Palm Oil, Crude Soyabean oil and Crude Sunflower Oil (Economics, Governance, GS-2,3))

Context:-In order to ensure availability of edible oil to consumers at fair prices, Government of India has further reduced the standard rate of duty on Crude Palm Oil, Crude Soybean oil 

 (i) Crude Sunflower Oil to 2.5% with effect from 11.09.2021

(ii) the standard rate of duty on Refined Palm Oils, Refined Soyabean oil and Refined Sunflower Oil to 32.5% 

In the same notification the Agri-cess for Crude Palm Oil has been increased from 17.5% to 20%.

What is the concern:-

• It may be noted that the International prices and thereby domestic prices of edible oils have been ruling high during 2021-22 which is a cause of serious concern from inflation as well as consumer’s point of view. 
• Import duty on edible oils is one of the important factors that impacted landed cost of edible oils and thereby domestic prices.

What government has done:-

• Standard rate of duty on Crude Palm Oil to 10%
• Amended the import policy of Refined Palm Oils from “restricted” to “free”
• standard rate of Duty on Crude Soyabean Oil and Crude Sunflower Oil to 7.5% and Refined Soyabean Oil and Sunflower oil to 37.5%
• To speed up clearances of consignments of imported edible oils delayed due to COVID-19, a Committee is in place comprising of Food Safety & Standards Authority of India (FSSAI)

Swarn Singh

Plutus IAS Current Affair Team Member