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New Delhi : In order to ensure availability of edible oil to consumers at fair prices, Government of India, vide Notification No. 42/2021- Customs, dated September 10, 2021, further reduced the standard rate of duty on Crude Palm Oil, Crude Soyabean oil, and (i) Crude Sunflower Oil, to 2.5% with effect from September 11, 2021, and (ii) the standard rate of duty on Refined Palm Oils, Refined Soyabean oil and Refined Sunflower Oil to 32.5% with effect from September 11, 2021. In the same notification the Agri-cess for Crude Palm Oil has been increased from 17.5% to 20%.
The Government, vide Notification No. 43/2021-Customs, dated September 10, 2021 has rescinded the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 34/2021- Customs, dated June 29, 2021, except as respects things done or omitted to be done before such rescission meaning thereby the latest import duty (w.e.f. 11.09.2021) will stand till further orders.
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, according to a PIB release.
The duty cuts already made amount to an estimated Rs 3500 crore in a full year. With the current/latest reduced import duty worth Rs 1,100 crore in full year, total direct value of benefits expected to be passed on to the consumers, in terms of duties given up by Government, is Rs 4,600 crore .