Government Cuts Crude Palm Oil Duty, Removes Import Restriction On Palmolein
Duty on crude palm oil has been reduced by the Centre
In order to bring relief to consumers and reduce edible oil prices, the Centre has cut the duty on crude palm oil (CPO) by 5 per cent.
Further, to cool down the prices of refined palm oil or palmolein, the Department of Food and Public Distribution has recommended removal of the restriction on import of palmolein and to put it in the open general category of imports.
The Finance Ministry through a notification dated June 29, reduced the duty on CPO to 10 per cent from the existing 15 per cent with effect from June 30, 2021. This will remain in effect till September 30, 2021.
The reduction will bring down the effective tax rate on CPO to 30.25 per cent from the earlier 35.75 per cent inclusive of additional agri-cess of 17.5 per cent and 10 per cent social welfare cess. This reduction, in turn, will bring down the retail prices of edible oils, official sources said.
In addition to this, the Department of Commerce has issued a revised import policy for refined bleached deodorised (RBD) palm oil and palmolein by removing both from restricted to free category. This would be effective with immediate effect and continue till December 31, 2021.
The major edible oils consumed in the country are mustard, soyabean, groundnut, sunflower, sesame oil, and niger seed among others.
Official sources said that food inflation, including high prices of edible oils has been a cause of concern and therefore the Government has been monitoring their prices and taking steps by way of removing bottlenecks to soften prices.