Cooking Oil prices likely to ease by December: Food Secretary



@indiatoday.in

Soaring oil prices are likely to come down from December as possible rates decline in international commodities but govt. not to reduce import duty after the arrival of new oilseed crop says Food Secretary Sudhanshu Pandey.

However, he indicated that the govt. would be strained to reduce further import duty as it needs to promote its own resources which have been affected by Covid. The Retail Prices of major edible oil have hiked up to 48% over the last few years and decreased the production of Soyabean which is India’s largest oilseed crop, However, Mr Pandey confirmed that the price hike to over.

December would be a marginally declining month for Soyabean and Palm oil so at least we can expect “No more price hike” Mr Pandey said to Reporters. He added that Domestic Soya Crop, Mustard Oil would help to soften the prices but it won’t be a dramatic drop as there is still global pressure. However governmental taxes and duties make a major chunk in Retail prices of Edible oil, two months ago Centre had reduced import duties on Palm oil from 15% to 10%. Though, effective duties such as Cess and other taxes are still 30.25% on Crude Palm Oil and 41.25% on Refined Palm Oil.

When it was asked whether any further tax cuts are possible in future, Mr Pandey noted that ‘Pandemic has affected everyone’s resources’ still govt. is trying to make better policies. He further said that govt. interruption in duty reduction and port facilitation has also ensured although global soy and Palm Oil prices hiked from 22% to 18% last week. India’s prices have only hiked by 2%. Further, he added the money earned through agricultural cess would be used to encourage domestic edible oil and to reduce dependency on imports.