New Delhi: As per the trend from 167 price collection centers, edible oil prices have declined quite significantly in the range of Rs. 5 and 20 per kg in the major retail markets across the country.
Major edible Oil players including Adani Willmar and Ruchi Industries have cut prices by Rs. 15 -20 per litre. The other players that have reduced the prices of edible oils are Gemini Edibles & Fats India, Hyderabad, Modi Naturals, Delhi, Gokul Re-foils and Solvent, Vijay Solvex, Gokul Agro Resources and N.K. Proteins, the Ministry of Consumer Affairs, Food & Public Distribution, stated here today.
The latest step taken by the Government for controlling the prices of various oils is with respect to Soya meal. Stock limit on Soya Meal which is a major source of protein and constitutes almost 30% in Livestock Feed has been imposed with effect from December 23, 2021 till June 2022 by including it in the Schedule to Essential Commodities Act, 1955.
The Government has also initiated certain long term and medium term plans to attain self-sufficiency in edible oils. Recently, the National Mission on Edible Oils – Oil Palm (NMEO-OP), a new Centrally Sponsored Scheme with a special focus on the North east region and the Andaman and Nicobar Islands, has been launched.
India is one of the largest importer of edible oils as its domestic production is unable to meet its domestic demand. The Country has to rely heavily on imports to meet the gap between demand and supply. Around 56-60% of the edible oils consumed in the country is met through imports. International prices of Edible Oils are under pressure due to shortfall in global production and increase in export tax/levies by the exporting countries. Therefore, domestic prices of Edible Oils are dictated by the prices of imported oils.
As the domestic prices are governed by the international price trends, the prices of edible oils in the country have been ruling very high for the past one year. This has been a major cause of concern for the Government. In order to rein in the prices and provide relief to the consumers who are reeling under unprecedented inflationary circumstances, the government has taken a number of steps. In a bid to reign in continuous rise in the cooking oil prices since past one year, the basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil have been cut 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.
Consequent upon the above reduction, the total duty is now 7.5% for Crude Palm Oil and 5% for Crude Soyabean Oil and Crude Sunflower Oil. The basic duty on RBD Palmolein Oil has been slashed to 12.5% from 17.5% recently. The basic duty on Refined Soyabean and Refined Sunflower Oil has been slashed to 17.5% from the current 32.5%. Before reduction, the agricultural infrastructure cess on all forms of Crude Edible Oils was 20%. Post reduction, the effective duty on Crude Palm Oil will be 8.25%, Crude Soyabean Oil and Crude Sunflower Oil will be 5.5% each.
Apart from rationalizing import duties on palm oil, sunflower oil and soyabean oil, futures trading in mustard oil on National Commodity and Derivatives Exchange Limited (NCDEX) has been suspended and stock limits on oils and oilseeds have been imposed.
– global bihari bureau
