Edible oil imports duty: The central government is going to increase import duty on edible oils soon. The central government is going to increase import duty for a second time in less than six months with the aim of supporting local farmers and edible oil manufacturers.
Edible oil will be expensive
Increasing import duty on edible oils has increased the risk of soybean oil, mustard oil and palm oil prices rising. The central government is increasing the duty on edible oils to reduce dependence on other countries. But this may have to increase prices to meet local traders and manufacturers to meet local demand.
The industry will benefit.
Local farmers are suffering heavy losses due to imports at a low rate of edible oils. In view of this, the government has decided to increase import duty for the second time. Earlier in September 2024, import duty was increased by 20 percent. The increase in import duty will benefit the farmers and the local industry. Apart from this, the export of soybean and mustard oil will also be boosted.
60 percent of the total requirement of edible oil is imported
Earlier, the prices of soybean had jumped due to increase in charge on edible oils. The industry has demanded a reduction in fee on refined oil and an increase in fee on palm oil. India imports 60 percent of its total edible oil requirements. The increase in fee will increase the sales of local farmers. Oil manufacturers will also be able to promote export by increasing production at local level.
No benefit to customers?
Domestic edible oil prices were expected to fall after the central government increased import duty on edible oils in September 2024. But traders and manufacturers did not provide any benefit to consumers. If the import duty is reduced this time too, then the question is whether consumers will get its benefit.
