Cooking oil, whose price hit a 10-year high in May this year, is set to become cheaper soon as the Centre has decided to slash the duty charged on crude palm oil by 5 per cent, News18 reported.
“The international prices of crude edible oil and refined palm oil were showing declining trend in prices over the past over the past one month. Still, the prices of domestic refined palm oil and crude edible oil remained high. The government, keeping in view the consumer interest due to rising prices of edible oil, has reduced the duty on CPO duty,” the Union Ministry of Consumer Affairs, Food and Public Distribution said in a statement.
“Ministry of Finance vide Notification No. 34/2021-Customs dated 29th June, 2021 has cut duty on CPO to 10% from 15% w.e.f. 30th June, 2021 and this will remain in force up to and inclusive of the 30th September, 2021,” the statement added.
Once the duty is slashed, the tax rate on crude palm oil will be 30.25 per cent including additional agri-cess of 17.5 per cent and social welfare cess of 10 per cent. The reduction in rates, which will be applicable till September 30, will bring down the retail rate of edible oils.
The Department of Food and Public Distribution (DFPD) has also recommended lifting of the restriction on the import of RBD Palmolein, a step which will help in further slash down the rate of refined palm oil.
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The Centre has also categorised refined palm oil under the open general category of imports to help domestic consumers buy it at lower rates.
“… Department of Commerce vide Notification No. 10/2015-2020 dated 30th June, 2021 has issued revised import policy for Refined Bleached Deodorized (RBD) Palm Oil and RBD Palmolein by removing both from restricted to free category. This would be effective with immediate effect and for a period upto 31.12.2021,” the statement by the Centre read.
India imports 60 per cent of edible oil (250 LMT per year), prices of which is steered by international crude oil prices.
Prices of cooking oil saw an exponential spike in May due to a 60 per cent rise in the retail price of cooking oil.
According to Solvent Extractors’ Association of India data, the price of imported crude palm oil was $1,173 per tonne in April 2021 compared to $599 last year.