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Some festive cheer on edible oils front as prices dip, mustard oil is the only exception -Samyak Pandey

-ThePrint.in

As many as 4 import duty cuts were effected with respect to three edible oils between June and September, following a sharp rise in prices over the preceding months.

New Delhi: The price of most edible oils has decreased by up to 7 per cent over the past two weeks on the back of a series of import duty cuts, bucking the usual festive-period trend of cost spurts.

Approximately 60 per cent of India’s edible oil demand is fulfilled by imports. These primarily constitute crude and refined forms of palm, soybean and sunflower oils.  

As many as four import duty cuts were effected with respect to the three edible oils between June and September, following a sharp rise in prices over the preceding months. In the same period, the import rules for palm oil were also eased, in another bid to check price rise. 

The first of the duty cuts was introduced by the central government on 29 June, when the standard rate of duty on crude palm oil was reduced. The latest came on 10 September, when the standard rate of duty on crude palm oil was reduced to 2.5 per cent from 10 per cent, and on crude sunflower and soybean to 2.5 per cent from 7.5 per cent. The duty on refined versions of all three oils was cut to 32.5 per cent from 37.5 per cent.

This has, in turn, also helped cool off the price of vanaspati, a cheaper ghee variant and household staple derived from palm oil.  

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