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Duty cut led to sharp decline in edible oil prices

New Delhi – Following Centre’s bold move to slash standard rate of duty on edible oils a week ago to check prices, a massive difference on daily wholesale prices was reported.

The daily wholesale prices of packed Palm Oil dropped by 2.50 percent followed by Seasame Oil by 2.08 percent, Coconut Oil by 1.72 percent, packed Ground Nut Oil by 1.38 percent, packed Sunflower Oil by 1.30 percent, packed Mustard Oil by 0.97 percent, packed Vanaspati by 0.71 percent and packed Soya Oil by 0.68 percent.

Based on the interaction with all the States and Edible Oil Industry Associations, need for greater  transparency was felt in decision making. As a follow up action the Department of Food and Public Distribution is in the process of creating a web portal for monitoring the stocks of Edible Oils and Oilseeds on a weekly basis in the country. The data on the portal will be submitted by millers, refiners, stockists and wholesalers etc. States have also issued directions for display of retail price prominently to ensure fair pricing.

The Government of India, Vide Notification No. 42/2021- Customs, dated 10th September 2021, further reduced the standard rate of duty on Crude Palm Oil, Crude Soyabean oil and Crude Sunflower Oil to 2.5 percent with effect from 11.09.2021. The standard rate of duty on Refined Palm Oils, Refined Soyabean oil and Refined Sunflower Oil was reduced to 32.5 percent with effect from September 11.

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