Center Reduces the duty on Crude Palm Oil (CPO) by 5%.

Spread the love

To bring relief to the consumers and reduce the edible oil prices, the Center has reduced the duty on Crude Palm Oil (CPO) by 5%. Further, DFPD recommends removing the restriction on the import of RBD Palmolein and putting it in the open general category of imports to cool down the prices of RBD Palmolein (Refined Palm Oil).

It’s a move to support its availability at lower prices for the domestic consumer.

In order to bring relief to the consumers and reduce the edible oil prices, the Center has reduced the duty on Crude Palm Oil (CPO) by 5%.

Further to cool down the prices of RBD Palmolein (Refined Palm Oil), the Department of Food & Public Distribution has recommended removing the restriction on import of RBD Palmolein and putting it in the open general category of imports.

These moves are expected to lower the prices of edible oils for domestic consumers. Mustard, Soyabean, groundnut, sunflower seed, and linseed (primary source) and coconut, palm oil, cottonseed, rice bran, solvent extracted oil, tree and forest origin oil are the major edible oils consumed in the country. The total domestic demand for edible oils in the country is approximately 250 LMT per year. Around 60% of the edible oils consumed in the country are met through imports. Palms oils(Crude +Refined) import constitutes around 60% of the total edible oil imported out of which 54% is imported from Indonesia and Malaysia. As the country has to depend heavily on imports to meet the gap between demand and supply, International prices have an impact on domestic prices of edible oils.

The Government has reduced the duty on CPO duty by 5% keeping in view the consumer interest due to rising prices of Edible oil. Further, DFPD recommended removing the restriction on the import of RBD Palmolein and putting it in the open general category of imports to support its availability at lower prices for the domestic consumer to cool down the prices of RBD Palmolein (refined Palm oil). Ministry of Finance vide Notification No. 34/2021-Customs dated 29th June 2021 has cut duty on CPO to 10% from 15% w.e.f. 30th June 2021 and this will remain in force up to and inclusive of the 30th September 2021.  The reduction will bring down the effective tax rate on CPO to 30.25% from the earlier 35.75%, including additional agri-cess of 17.5% and 10% social welfare cess. This reduction, in turn, will bring down the retail prices of Edible Oils.

Further, the Department of Commerce vide Notification No. 10/2015-2020 dated 30th June 2021 has issued a revised import policy for Refined Bleached Deodorized (RBD) Palm Oil and RBD Palmolein by removing both from restricted to free category. This would be effective with immediate effect and for a period up to 31.12.2021.

Making India “AtmaNirbhar” in edible oils is our cherished goal and National Oilseeds mission is committed to achieving it by aligning policies including foreign trade. The government has reduced duty until September 2021 to clearly signal the farmers that their interests will not be compromised. The government will monitor the prices daily, expecting the industry to pass on full benefits to the consumers.