The government said that retail prices of cooking oils, excluding mustard oil has dropped in the domestic market despite a rise in worldwide rates as a result of its decision to lower import duties on crude and refined edible oils.
According to an official statement, international prices of edible oils have increased by 1.95 %to 7.17 % as a result of the reduction in import duties.
Domestic retail prices have decreased by 0.22 %to 1.83 % after the duty reduction on imported edible oils, which took effect on September 11. Taking worldwide rising prices into account, the overall impact on rates is decline in the range of 3.26 percent to 8.58 percent since September 10.
"Necessary policy intervention by the Central Government in the form of duty reduction is proving to be beneficial for general consumers," according to the statement.
It did, however, that "mustard oil is solely domestic oil, and its prices are likely to soften as a result of a variety of other measures the government is considering."
The Centre has lowered import duties on edible oils in order to keep costs under control and enhance domestic supply.
It has also implemented anti-hoarding measures, such as wholesalers, millers, and refiners to disclose stock information on a web portal.
Retailers have even been urged to prominently display the prices of branded edible oils so that customers may make an informed decision.
The government reduced the base customs duties on palm oil, soy oil, and sunflower oil last month. The base import tax on crude palm oil has been cut from 10% to 2.5%, while the tax on crude soy oil and crude sunflower oil has been reduced from 7.5% to 2.5%.
The effective duty on crude palm oil, crude soyoil, and crude sunflower oil was reduced to 24.75 percent, while the effective duty on refined palm oil, soyoil, and sunflower oil was reduced to 35.75 percent.
In terms of other food products, the government stated that despite an increase in the MSP (minimum support price), rice and wheat prices had fallen in the market.
Potato retail prices in India plummeted 44.77 percent over years, while onion and tomato prices fell 17.09 percent and 22.83 percent, respectively, in the previous year.
