Post reduction of the agri-cess from 7.5% to 5%, the import tax gap between CPO and Refined Palm Oil increases to 8.25%
New Delhi: Centre has reduced the agri-cess for crude palm oil (CPO) from 7.5% to 5% with effect from February 12, 2022, the Ministry of Consumer Affairs, Food and Public Distribution, stated here today. It said the decision has been taken with a view to provide further relief to consumers and to keep in check any further rise in the prices of domestic edible oils due to rise in the prices of edible oils globally.
After reduction of the agri-cess, the import tax gap between CPO and Refined Palm Oil increases to 8.25% which, the Ministry stated, will benefit the domestic refining industry to import crude oil for refining.
The Ministry said it has taken another pre-emptive measure to check the prices of edible oils by extending the current basic rate of import duty of zero percent on Crude Palm Oil, Crude Soyabean oil and Crude Sunflower Oil upto September 30, 2022. The rate of import duty on Refined Palm Oils at 12.5%, Refined Soyabean oil and Refined Sunflower Oil at 17.5% will remain in force up to September 30, 2022. “This measure will help in cooling down the prices of edible oils which are witnessing an upward trend in the international market due to lower availability and other international factors,” the Ministry said.
According to the Ministry, these steps will augment the earlier measure taken by the Government such as the stock limit order dated February 3, 2022, vide which the Government had specified the stock limit quantities on edible oils and oilseeds for a period upto June 30, 2022 under the Essential Commodities Act, 1955. “This measure is expected to curtail any unfair practices like hoarding, black marketing of edible oils and oilseeds in the market which may lead to any increase in the prices of edible oils,” it said.
Meanwhile the Oil industry is being called for a meeting tomorrow to do their best in passing on the benefit to consumers and State Governments have been requested to enforce stock limit order strictly, the Ministry informed.
– global bihari bureau
