Key Points:
- “The ripple effect of this slashing of base import price could be seen in the retail prices..” AMRG & Associates Senior Partner Rajat Mohan said, as reported by PTI.
- This step will lead to the cutback on the customs duty of the base import price and overall reduced prices, as per the tax experts.
- Since Thursday, June 17, the new tariff value of edible oil were effectively placed.
Inflation in India in general has touched the sky. Right from Petrol to Raw Materials and even Edible Oil. But, to cut some stress off people’s minds, the government announced the reduction of tariff value for the import of edible oil.
The tariff value has been reduced by up to USD 112 per tonne for palm oils which is one of the others. This reduction will lead to lowering the inflated domestic prices of oil.
Through a notification issued by the Central Board of Indirect Taxes and Customs (CBIC), the tariff for the import values of crude palm oil by USD 86 per tonne, and of RBD and crude palmolein by USD 112 per tonne each have been cut. It also reduced the base import price of crude soyabean oil by USD 37 per tonne.
Last year, domestic soyoil and palm oil reached double their actual prices burning holes in the pockets of the consumers as oil was not the only inflated item. Fuel prices have still not reduced and were high enough last year plus, the Covid-19 situation led to reduced incomes too. The doubled prices led to the world’s biggest vegetable oil importer to consider reducing duties. India meets about two-thirds of its edible oil demand through imports.
Since Thursday, June 17, the new tariff value of edible oil were effectively placed.
This step will lead to the cutback on the customs duty of the base import price and as per the tax experts, this will also result into a decrease in an overall price value in the domestic markets.
“The ripple effect of this slashing of base import price could be seen in the retail prices, provided the entire supply chain, including the manufacturers, distributors, and retailers, are ready to pass on this benefit to the ultimate consumer,” AMRG & Associates Senior Partner Rajat Mohan said, as reported by PTI.
On Wednesday, the government has said that the edible oil prices have gone down since the last month and it said, “The measures will contribute towards making India Atmanirbhar (self-reliant) in edible oils, which is key ingredient in cooking of food in India.”
Recent Edible Oil Prices:
| Oil | Old Price | Reduced Price | Reduced Price % |
| Palm Oil | 142/kg | 115/kg | 19% |
| Sunflower Oil | 188/kg | 157/kg | 16% |
| Soya Oil | 162/kg | 138/kg | 15% |
| Mustard Oil | 175/kg | 157/kg | 10% |
| Groundnut Oil | 190/kg | 174/kg | 8% |
| Vanaspati | 154/kg | 141/kg | 8% |
