Government Urges Edible Oil Associations to Maintain Minimum Retail Prices Amid Duty Hike

ENA Sectors 2024-09-18 16:37:20 New Delhi, Sep 18 (KNN) The Government of India has called upon major edible oil associations to maintain the Minimum Retail Price (MRP) of various edible oils until the existing stocks, imported under lower Basic Customs Duties (BCD), are depleted. This directive comes in light of a recent increase in import duties on edible oils aimed at supporting domestic oilseed prices. Today, the Secretary of the Department of Food and Public Distribution (DFPD) led a crucial meeting with representatives from the Solvent Extraction Association of India (SEAI), the Indian Vegetable Oil Producers Association (IVPA), and the Soybean Oil Producers Association (SOPA). The key agenda was to discuss and strategise on pricing measures in response to the recent changes in import duties. The meeting concluded with a clear directive for the leading edible oil associations to ensure that the MRP for oils, including sunflower oil, soybean oil, and mustard oil, remains steady until the stocks imported at 0 per cent and 12.5 per cent BCD are exhausted. The associations were instructed to relay this guidance promptly to their members. This guidance follows recent reductions in oil prices which were a direct result of falling international prices and decreased import duties. Previously, such reductions were aimed at aligning domestic prices with international trends to alleviate consumer costs. However, in a shift to bolster domestic oilseed prices, the government has significantly increased the basic customs duty on various edible oils effective from September 14, 2024. The duty on crude soybean oil, crude palm oil, and crude sunflower oil has been raised from 0 per cent to 20 per cent, culminating in a total effective duty of 27.5 per cent on these oils. Similarly, the duty on refined palm oil, refined sunflower oil, and refined soybean oil has been escalated from 12.5 per cent to 32.5 per cent, leading to a total effective duty of 35.75 per cent on refined oils. The central government is cognizant of the substantial stockpile of approximately 30 lakh metric tonnes (LMT) of edible oil, imported at the previously lower duties. This reserve is anticipated to cover 45 to 50 days of domestic consumption, ensuring that immediate shortages are mitigated. The DFPDs intervention underscores the governments strategy to balance the interests of both consumers and domestic producers in the face of fluctuating international commodity prices and shifting trade policies. (KNN Bureau) 39329 https://knnindia.co.in/news/newsdetails/sectors/government-urges-edible-oil-associations-to-maintain-minimum-retail-prices-amid-duty-hike 2024-09-18 16:37:20 knnindia.co.in Government Urges Edible Oil Associations to Maintain Minimum Retail Prices Amid Duty Hike