A day after the government slashed import tariffs on edible oils in an effort to drive their prices down, it wrote to eight major oil-producing states asking them to ensure that rates were lowered after the reductions in rights to relieve the population.
In a letter to eight major oil-producing states, including Maharashtra, Gujarat, Uttar Pradesh, West Bengal, Tamil Nadu and Andhra Pradesh, the government asked them to ensure that the full benefit tariff reductions are passed on to consumers. in order to relieve them from the high prices of edible oils, official sources said.
The Ministry of Consumption, Food and Public Distribution on Wednesday reduced import duties on edible oils, keeping in mind the holiday season and the fact that the increase in their prices was becoming a subject of concern.
The Central Council of Indirect Taxes and Customs (CBIC) in two separate notifications had reduced basic tariffs and the cessation of agricultural and infrastructure development on a variety of edible oils.
The basic tariffs on crude palm oil, crude soybean oil and crude sunflower oil have been reduced from 2.5 percent to zero. Crude palm oil also saw its agricultural contribution drop from 20 to 7.5 percent.
The agricultural tax on crude soybean oil and crude sunflower oil has been reduced from 20 percent to 5 percent. The tariff reductions on all categories of edible oils came into effect as of today and are applicable until March 31, 2022.