Govt reduced Tariff on Edible Oil Import
Union government has reduced tariff value for import of edible oil including palm oil by USD 112 per tonne. This move will lead to reduction in domestic prices.
- Central Board of Indirect Taxes and Customs (CBIC) reduced the tariff import value of crude palm oil by USD 86 per tonne.
- Import price on RBD and crude palmolein reduced by USD 112 per tonne.
- Base import price of crude soyabean oil was reduced by USD 37 per tonne.
Significance of the move
This move will help in softening the edible oil prices in domestic market as with reduction in import tariff, customs duty on base import price would also reduce.
Import of edible oils
In India, there is a big gap between domestic production and consumption of edible oils. This leads to massive imports. India’s two-third of edible oil demand is fulfilled through imports. According to data of Solvent Extractors’ Association of India, overall import of edible and non-edible oils during November 2020 to May 2021 have increased by 9 percent to 76,77,998 tonnes. With rise in imports, retail prices of edible oils have also increase while, domestic edible oil prices have increase two fold in past year.
Month: Current Affairs - June, 2021
Category: Economy & Banking Current Affairs
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