In the coming times, further reduction in the prices of edible oil can be seen. The central government has reduced the import duty on refined soybean oil and refined sunflower oil by 5%.
Cut in import duty on edible oil
Now the import duty on oils will be 12.5% instead of 17.5%, which is applicable from today itself. The government has taken this step to control the prices of edible oil, as the domestic supply will increase due to reduction in import duty.
According to this notification, import duty on crude oil such as palm oil, sunflower oil and soya oil will be 5%. While the duty on refined oil import will be 12.5% along with a cess of 10%. That is, the effective tax will be 13.75%.
The government had asked to reduce the prices by Rs 8-12
In the beginning of this month, the Central Government had ordered the Edible Oil Association to cut the prices of edible oils by Rs 8-12 per liter with immediate effect, considering the prices in the global market. After the meeting with the Edible Oil Association held this month, the Food Minister said that some companies which have not reduced the prices, and their MRP is higher than other brands, have also been asked to reduce the prices.
Prices fell sharply in the international market
In fact, for the last few months, there has been a sharp decline in the prices of edible oils in the international market. This month itself, the industry told that the global prices of different edible oils have decreased by $150-200 per tonne in the last two months, then they have reduced their MRP, after this order of the government, they will further reduce the prices. Earlier this month, Mother Dairy announced a reduction in the prices of its edible oil brand Dhara by Rs 10 per litre.
How much the price has already reduced
On June 2 this year, the price of Crude Palm Oil (CPO) at Mumbai Port is $860 per tonne. Whereas, during the same period last year, it was at $1,557 per tonne. Whereas the price of crude soy oil was from $ 1,686 last year, which has now come down to $ 970. The price of crude sunflower soy oil has also come down, from $ 1,941 last year to $ 860 per tonne.
The prices have definitely come down in the world markets, but the prices of oil in the domestic market have still not earned accordingly, now it has to be seen that how much benefit the consumers get from the reduction in import duty.
