Edible Oil: Edible oil prices may fall amid rising inflation, this move of the government raised hopes

Posted on 25th May 2022 by rohit kumar

Along with petrol and diesel, the prices of edible oil have also seen a tremendous increase during inflation in the country. But, now after cutting the excise duty on fuel prices to the general public, the government has taken another step, which will give relief to the public.

 

Custom duty abolished for two years

 

On Tuesday, the central government took a big decision regarding the prices of edible oil. The government has decided to do away with custom duty and Agriculture Infrastructure and Development Cess for two years on the import of 20 lakh metric tonnes of soybean oil and sunflower oil. Which till now used to be at the rate of five percent.

 

Retail prices will come down

 

With this announcement of the government, the prices of edible oil in the country are expected to come down. According to a report released in this regard, the exemption given on the import of oils will be applicable till March 31, 2024. According to the notification issued by the Finance Ministry on Tuesday, import duty will not be levied on 2 million tonnes of crude soybean and sunflower oil annually in the financial years 2022-23 and 2023-24.

 

The major share of edible oils in inflation

 

Retail inflation in the country has reached an eight-year high. If we look at the data released by the government recently, the retail inflation figure has reached 7.79 percent. It may be mentioned here that edible oil is the major contributor to inflation and the retail price of edible oils has seen a significant increase in the last few months. In this move of the government, the Central Board of Indirect Taxes and Customs (CBIC) has said through social media that this decision is going to give relief to the consumers.

 

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