Centre reduces agri-cess on crude palm oil from 7.5% to 5%
07 Mar 2022
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Government of India has reduced the agri-cess on crude palm oil (CPO) from 7.5 per cent to 5 per cent, with a view to provide further relief to consumers and to keep in check any further rise in the prices of domestic edible oils due to rise in the prices of edible oils globally. The reduction in cess is effective from 12 February 2022.
After reduction of the agri-cess, the import tax gap between CPO and refined palm oil has increased to 8.25per cent. The increase in the gap between the CPO and refined palm oil will benefit the domestic refining industry to import crude oil for refining, ministry of consumer affairs, food and public distribution stated in a release.
In another pre-emptive measure to check the prices of edible oils, the government extended the current basic rate of import duty of zero per cent on crude palm oil, crude soyabean oil and crude sunflower oil up to 30 September 2022. The rate of import duty on refined palm oil at 12.5 per cent and that on refined soyabean oil and refined sunflower oil at 17.5 per cent will remain in force up to 30 September 2022.
This measure will help in cooling down the prices of edible oils which are witnessing an upward trend in the international market due to lower availability and other international factors, the release stated.
These steps will augment the earlier measure taken by the government, viz, the stock limit order dated 3 February 2022 vide which the government had specified the stock limit quantities on edible oils and oilseeds for a period up to 30 June 2022 under the Essential Commodities Act, 1955. This measure is expected to curtail any unfair practices like hoarding, black marketing etc of edible oils and oilseeds in the market, which may lead to any increase in the prices of edible oils.
The government has convened a meeting of oil industry on 15 February to seek industry cooperation in passing on the benefit to consumers and state governments have been requested to enforce stock limit order strictly, the release added.
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