Centre yet to decide on duty cut in edible oils

NEW DELHI: The Centre did not take any decision on Tuesday after reviewing rising trend in prices of edible oils, a government official said, amid speculation the government may cut customs duty.

An expected shortfall in domestic oilseed output this year has pushed up refined soya oil prices by Rs 3,000 to Rs 458,000 per tonne since December, a trade official said. “There was a meeting today on edible oils, but no concrete decision was taken,” an official, who attended the meeting, said.

India is the world’s largest buyer of edible oils. It imports palm oil from Malaysia and Indonesia and soya oil from Brazil and Argentina. The farm ministry has estimated country’s oilseeds output at 23.3 million tonnes this year, down from 27.9 million tonnes a year ago.

“The crop is lower and the country may have to import a larger quantity. The prices have gone up and that is hurting the consumer,” said BV Mehta, executive director, Solvent Extractors Association of India. A section of media said the government was likely to consider a cut in customs duties of edible oils to improve supplies in the domestic market and keep a lid on prices. In January, the government cut import duties on crude palm oil and palmolein to 60% from 70%.

It also brought down the customs duty on other palm oils. In the Budget, the government abolished a 4% additional customs duty on edible oils. It also cut the duty on sunflower oil by 15% but the duty on soya oil was left untouched at 45%.