Speed Post News Network
New Delhi : With a view to providing further relief to consumers and to keep in check any further rise in the prices of domestic edible oils due to rise in the prices of edible oils globally, the Government of India has reduced the agri-cess for Crude Palm Oil (CPO) from 7.5% to 5% with effect from February 12, 2022.
After reduction of the agri-cess, the import tax gap between CPO and Refined Palm Oil has increased to 8.25%. The increase in the gap between the CPO and Refined Palm Oil will benefit the domestic refining industry to import Crude Oil for refining, according to a PIB release.
Another pre-emptive measure taken by the Government to check the prices of edible oils is to extend the current basic rate of import duty of zero percent on Crude Palm Oil, Crude Soyabean oil, and Crude Sunflower Oil up to September 30, 2022. The rate of import duty on Refined Palm Oils at 12.5%, Refined Soyabean oil and Refined Sunflower Oil at 17.5% will remain in force up to September 30, 2022. This measure will help in cooling down the prices of edible oils which are witnessing an upward trend in the international market due to lower availability and other international factors.
The aforesaid steps will augment the earlier measure taken by the Government viz. the stock limit order dated February 3, 2022, vide which the Government had specified the stock limit quantities on edible oils and oilseeds for a period up to June 30, 2022, under the Essential Commodities Act, 1955. This measure is expected to curtail any unfair practices like hoarding, black marketing etc. of edible oils and oilseeds in the market which may lead to any increase in the prices of edible oils. Oil industry is being called for a meeting on February 15, 2022, to do their best in passing on the benefit to consumers and State Governments have been requested to enforce stock limit order strictly.