The duty cuts are effective since September 11, 2021. They are part of various efforts which the government has been taking to control the rising price of edible oils, especially since February 2021.
By reducing the landed cost of edible oils, these duty cuts are expected to reduce domestic prices of these commodities. This will thus help ensure the availability of these commodities to consumers, at fair prices.
Along with reducing import duties, the agricultural cess for crude palm oil has been raised from 17.5% to 20%.
The current reduction in import duties on edible oils is worth Rs1,100cr for the full year. Including earlier duty cuts, benefits worth Rs4,600cr are expected to be passed on to the consumers, in terms of duties given up by the Government.
Some of the recent efforts taken by the government to control price rise are as given below.
Rationalization of Import Duty on crude palm oil
Import duty on crude palm oil was reduced to 10%, with an effect from 30.06.2021.
Making Import of Refined Palm Oils Easier
Import policy for refined palm oils was amended from “restricted” to “free”, with effect from 30.06.2021, till 31.12.2021.
Reduction of import duties on various edible oils
Import duty on Crude Soyabean Oil and Crude Sunflower Oil was reduced to 7.5% and that on Refined Soyabean Oil and Sunflower oil to 37.5%, with effect from 20.08.2021.
Import Facilitation at various ports
Imports are being facilitated at various ports, by Customs, FSSAI, PP&Q, DFPD and DoCA.
Special measures for speedy clearances of import consignments in wake of COVID-19
A Committee is working in order to regularly review and speed up clearance of import consignments, which have been delayed due to COVID-19. This has helped reduce average dwell time for clearances of edible oils consignments to 3.4 days.