New Delhi, September 17, 2024: Amid increase in prices of edible oil, Centre today advised the leading Edible Oil Associations to ensure that the maximum retail price (MRP) of each oil is maintained till the availability of edible oil stocks imported at 0 % & 12.5% Basic Customs Duty (BCD) and take up the issue with their members immediately.
The Secretary, Department of Food and Public Distribution (DFPD), Government of India has chaired a meeting with the Representatives from Solvent Extraction Association of India (SEAI), Indian Vegetable Oil Producers’ Association (IVPA) and Soyabean Oil Producers Association (SOPA) here today, to discuss the pricing strategy.
The edible oil associations were advised to ensure that the MRP of each oil is maintained till the availability of edible oil stocks, Central Food Ministry sources said.
Earlier also, in pursuance of the Department’s meetings with leading edible oil associations, the MRP of edible oils such as Sunflower, Soyabean and Mustard oil were reduced by the industry, the sources added.
The reduction in oil prices had come in the wake of reduction of international prices and reduced import duty on edible oils making them cheaper. The industry has been advised from time to time to align the domestic prices with the international prices so as to reduce the burden on the consumers.
The Government of India has implemented an increase in the Basic Customs Duty on various edible oils to support domestic oilseed prices.
Effective September 14, 2024, the Basic Customs Duty on Crude Soybean oil, Crude Palm oil, and Crude Sunflower oil has been raised from 0% to 20%, making the effective duty on crude oils to 27.5%.
Additionally, the Basic Customs Duty on Refined Palm oil, Refined Sunflower oil, and Refined Soybean oil has been increased from 12.5% to 32.5% making the effective duty on refined oils as 35.75%.
These adjustments are part of the government’s ongoing efforts to bolster domestic oilseed farmers, especially with the new soybean and groundnut crops expected to arrive in markets from October 2024.
The decision follows comprehensive deliberations and is influenced by several factors: increased global production of soybean, oil palm, and other oilseeds; higher global ending stocks of edible oils compared to last year; and falling global prices due to surplus production.
This situation has led to a surge in imports of inexpensive oils, exerting downward pressure on domestic prices. By raising the landed cost of imported edible oils, these measures aim to enhance domestic oilseed prices, support increased production, and ensure that farmers receive fair compensation for their produce, they sources said.
Central Government is also aware that there is close to 30 LMT stock of edible oils imported at lower duty which is sufficient for 45 to 50 days domestic consumption.
More Stories
Chhattisgarh Received 176.3 MM Rainfall So Far
Chhattisgarh has received good amount of rainfall in all the districts of the state so far this monsoon.
Chief Secretary Amitabh Jain Creates History
Chhattisgarh Chief Secretary Amitabh Jain today created a history in the administrative cadre of the state by getting extension of service.
Sai Cabinet Approves Chhattisgarh State Logistics Policy-2025
For the overall development of the logistics sector in Chhattisgarh, the cabinet meeting held today under the chairmanship of Chief Minister Vishnu Dev Sai approved the Chhattisgarh State Logistics Policy-2025.
Chhattisgarh Input Subsidy Scheme to be Expanded
Taking a major decision in the interest of farmers, Chhattisgarh Cabinet, chaired by Chief Minister Vishnu Dev Sai, today decided to amend the state Krishak Unnati Yojana and expand the scope of the input subsidy scheme.
CM Sai Re-launches Free Shoes Scheme in Chhattisgarh
Chhattisgarh Chief Minister Vishnu Dev Sai today re-launched the ‘Charan Paduka Yojana’ by making women tendu leaf pluckers wear Charan Paduka in Jamgaon of Durg district.
Chhattisgarh CM meets Governor; Discusses important issues
Chhattisgarh Chief Minister Vishnu Dev Sai today met the Governor Ramen Deka and discussed various issues pertaining to the state.