Central government The basic custom duty on crude edible oils to be imported on Wednesday reduced the basic custom duty from 20 percent to 10 percent. The Ministry of Consumer Affairs, Food and Public Distribution said in a release that the Center has reduced the basic customs duty on crude food oils- crude sunflowers, soybeans and palm oil from 20% to 10%, after which the import duty difference between raw and refined edible oils has increased from 8.75% to 19.25%.
Orders to give immediate benefit to edible oil industry associations
The Food Ministry has ordered the Food Oil Industry Association to give immediate benefits to customers of import duty cuts. A meeting was held with the major edible oil industry associations and the shareholders of the industry headed by the Secretary of the Department of Food and Public Distribution, where they were issued a advice while instructing them to give the benefit of fee deduction to consumers. The department said in the statement that industry shareholders are expected to repair their price (PTD) and maximum retail price (MRP) to the distributors according to the low cost of immediate effect.
The updated brand MRP sheet will have to be shared
Edible oil associations have been requested to advise their members to implement immediate price deduction and share the updated brand MRP sheet with the department on a weekly basis. The Ministry shared a format to report the cuts made in MRP and PTD data with the edible oil industry, which emphasized that “to benefit on time through supply chains, it is necessary to ensure that customers have similar cuts in retail prices”.
Why did the government take this big decision
This decision has been taken after a detailed review of a sharp increase in edible oil prices and fees last year. Due to this increase, the pressure of inflation on the common people increased considerably, retail edible oil prices increased and food inflation increased. Officials said the 19.25 percent duty difference between raw and refined oils would help encourage domestic refining capacity use and reduce imports of refined oils.
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