Categories: Business

India considers edible oil import tax cut to lower prices: Report

MUMBAI/NEW DELHI: India is considering reducing import taxes on edible oils after cooking oil prices hit record highs last month, two government and two industry officials told Reuters, to reduce food costs in the world’s biggest vegetable oil importer.
While no decision has been made, the tax reduction could lower local prices and boost consumption, giving support to Malaysian palm oil, along with soy and sunflower oil prices, and dampening prices of local oilseeds such as rapeseed, soybean and groundnut.
“A proposal to lower the import duty on edible oils is under review,” a government official with knowledge of the matter who asked to remain unidentified said on Wednesday.
The government will make a final decision to cut the taxes sometime this month, said an official at the Ministry of Consumer Affairs also involved in the process who asked to remain unidentified.
Domestic soyoil and palm oil prices have more than doubled in the past year, hitting consumers already stung by record fuel prices and reduced incomes amid the Covid-19 pandemic.
India meets nearly two-thirds of its edible oil demand through imports, levying a 32.5% tax on palm oil imports, while crude soybean and soyoil are taxed at 35%.
It buys palm oil from Indonesia and Malaysia, and soyoil and sunflower oil come from Argentina, Brazil, Ukraine and Russia.
“There are different views about it.
One view is to first monitor the planting of Kharif (summer-sown) oilseeds and see how it pans out,” said the first official.
“The other view is to evaluate the impact of lowering the duty,” he said, noting this has to be weighed against the risk of suppliers raising prices.
However, some in the industry are opposed to cutting import duties because that may only help overseas suppliers and discourage farmers from expanding oilseed acreage, said the consumer affairs official.
“Revenue is not an issue.
The government’s tax collection would remain the same as last year since prices have gone up in the world market,” the official said.
The average landed price of crude palm oil at Indian ports was $1,173 per tonne in April 2021 compared to $599 a year ago, according to data from the Solvent Extractors’ Association of India (SEA), a trade body.
During a meeting with government officials last week on reducing edible oil prices, the SEA suggested using the taxes to subsidise sales to consumers, said the group’s head BV Mehta.
“The government can help poor people even without cutting import tax by providing subsidised edible oils,” Mehta said.

news2in

Share
Published by
news2in

Recent Posts

44 ordered to attack the procession

Ludhiana: The police have submitted FIR to four identified and at least 40 unknown attackers…

3 years ago

Punjab: Police Reject conspiracy theory in the case of Deep Sidhu

Sonīpat / Ludhiana / Ambala: Actor Punjabi - Activist Activist Deep Sidhu, who died in…

3 years ago

Punjab: Hidden Strength Working Behind PM Narendra Modi, Arvind Kejriwal, said Rahul Gandhi

PATIALA / MANSA / BARNALA: Attacking Prime Minister Narendra Modi and AAP National Convener Kejriawal,…

3 years ago

BJP made AAP to endanger the Congress, said Ajay

Jalandhar: BJP and AAM AAM AADMI parties are one party, Secretary General of the Ajay…

3 years ago

Our job is to make Punjab No. 1 State: Meenakshi Lekhi

Ludhiana: Minister of Union Culture Meenakshi Lekhi while campaigning to support the BJP candidate from…

3 years ago

Feb 20 is an opportunity to change the destiny of Punjab and his children: Bhagwant Mann

Machhiwara (Ludhiana): AAM AAM AADMI Party (AAP) Head of Punjab Candidate and Members of Parliament…

3 years ago