The Government of India is working diligently to ensure that you and the end consumers benefit from the decline in international edible oil prices. With a watchful eye on domestic retail prices, the government is taking decisive steps to make sure that the cost savings are passed on to the public. Here’s an overview of the significant measures that have been put into action, bringing ease and control to the edible oil market.
Overview
In response to the falling international prices of major edible oils like Crude Soybean Oil, Crude Sunflower Oil, Crude Palm Oil, and Refined Palm Oils, the Indian Government has been proactively addressing the situation. Regular meetings with leading Edible Oil Associations and industry players have led to guidance on reducing retail prices in line with international trends.
Key Points
1. Cutting Basic Duty on Crude Oils: Government took a significant step by eliminating the basic duty on Crude Palm Oil, Crude Soybean Oil, and Crude Sunflower Oil, bringing it down to nil. This move was aimed at easing the burden on consumers and stabilizing the market. Additionally, the Agri-cess on oils was reduced from 20% to 5%, providing further relief.
2. Extension of Duty Structure: The duty cuts mentioned above were initially set until 31st March 2024. The government’s commitment to supporting consumers and farmers is evident in extending this duty structure beyond the original timeline.
3. Reducing Duty on Refined Oils: To encourage affordability, the basic duty on Refined Soybean Oil and Refined Sunflower Oil saw a considerable reduction from 32.5% to 17.5%. Similarly, the basic duty on Refined Palm Oils was brought down from 17.5% to 12.5%. These changes were made permanent until 31st March 2024.
4. Free Import of Refined Palm Oils: The government also extended the provision of free import of Refined Palm Oils until further orders. This measure was put in place to maintain a steady supply and counterbalance market fluctuations.
5. Decrease in Retail Prices: Thanks to the collective efforts made by the government, the retail prices of key edible oils have seen substantial declines. Over the past year, Refined Sunflower Oil, Refined Soybean Oil, and RBD Palmolien witnessed reductions of 29.04%, 18.98%, and 25.43%, respectively, benefiting both consumers and farmers.
6. Reduced Import Duty on Refined Oils: In a recent move, the government further reduced the import duty on Refined Sunflower Oil and Refined Soybean Oil from 17.5% to 12.5%. This measure took effect from 15th June 2023, aiming to maintain affordability and accessibility.
These actions were conveyed by Ms. Sadhvi Niranjan Jyoti, the Minister of State for the Ministry of Consumer Affairs, Food, and Public Distribution, in a written reply in the Lok Sabha.
Conclusion
The Government of India is committed to supporting farmers and ensuring that the advantages of the global decline in edible oil prices are transferred to the end consumers. By implementing various measures such as reducing import duties and closely monitoring retail prices, the government aims to stabilize the market and provide relief to all stakeholders involved. So, farmers, rest assured that your government is looking out for you!
