The centre is hopeful that the tax cut would not only bring down the food inflation but would also reduce the prices of edible oils by Rs 15 to 20 per kg.
(Representational Image; Source: iStock)
The Centre has asked all oil-producing states to ensure that the benefits of the recent tax cut on edible oil ‘must’ be passed on to the end consumers especially during the ensuing festival season.
The centre is hopeful that it would not only bring down the food inflation but would also reduce the prices of edible oils by Rs 15 to 20 per kg.
In a strong-worded letter written to the main oil-producing states including Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Uttar Pradesh, West Bengal, Tamil Nadu and Andhra Pradesh, the Ministry of Food and Public Distribution has expressed its displeasure that the benefit of duty cut on edible oil has not percolated down to the end consumers.
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The Ministry told all the states to take appropriate and immediate action to ensure that the prices of oil are brought down to commensurate levels in line with the import duty reductions. It directed all states to ensure that the full benefit of duty reduction made by the Centre is passed on to the consumers in order to provide immediate relief from the prevailing high prices of Edible Oils.
The Centre has been slashing custom duty on crude and refined edible oil for the past one year to stabilize edible oil prices, the Ministry said. “The Central Government has slashed the basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil from 2.5% to Nil. The Agri-cess on these Oils has been brought down from 20% to 7.5% for Crude Palm Oil and 5% for Crude Soyabean Oil and Crude Sunflower Oil,” the Ministry.
Similarly, the basic duty on refined Palmolein Oil, refined Soyabean and refined Sunflower Oil has been slashed to 17.5% from the current 32.5% from October 14. Through all these steps, prices of edible oil may cool down by Rs 15 to Rs 20 a kg, the Ministry claimed.
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