Center reduces agri-cess from crude palm oil to check edible oil prices

The central government has reduced agri-cess for crude palm oil (CPO) from 7.5% to 5% with effect from February 12, it said.

"Post reduction of the agri-cess, the import tax gap between CPO and Refined Palm Oil has increased to 8.25%, " it said in a statement. It has also invited industry players for a meeting on Tuesday.

This will provide relief to consumers and help in keeping a check on any further rise in the prices of domestic edible oils, it added.


The government has also extended the current basic rate of import duty of zero percent on crude palm oil, crude soyabean oil and crude sunflower oil till September 30.

"The rate of import duty on Refined Palm Oils at 12.5%, Refined Soyabean oil and Refined Sunflower Oil at 17.5% will remain in force up to 30th 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 statement said.

The government had earlier imposed stock limit quantities on edible oils and oilseeds for a period upto June 30, under the Essential Commodities Act, 1955 to check hoarding.