In a move which is likely to lower domestic prices, the government has reduced the tariff value for import of edible oil, including palm oil, by up to $112 per tonne. The Central Board of Indirect Taxes and Customs (CBIC), through a notification, has cut the tariff import value of crude palm oil by $86 per tonne, and of RBD and crude palmolein by $112 per tonne each. It also reduced the base import price of crude soyabean oil by $37 per tonne. The changes in tariff value of edible oil are effective from June 17.
Domestic edible oil prices have more than doubled in the past year. India meets about two-thirds of its edible oil demand through imports. The government had on June 16 said edible oil prices have started falling in the past one month and it is working on a series of mid- and long-term measures to make the country self-sufficient in the segment.
According to data compiled by the Solvent Extractors' Association of India, the overall import of vegetable oils (edible and non-edible oils) during November 2020 to May 2021 rose 9 per cent to 76,77,998 tonnes, compared with 70,61,749 tonnes in the corresponding period of the previous year. Edible oil year runs from November to October.
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