Edible oil: The government is looking to reduce the cess charge levied on edible oil imports to offset price hikes following the recent Indonesian ban on shipments of crude palm oil. According to a government official, the Ministry of Consumer Affairs, Food and Public Distribution is likely to propose a reduction in Agriculture Infrastructure Development Cess (AIDC) by 5%, Mint reported. The final decision will be taken by the Department of Revenue in the Ministry of Finance. At the same time, after the Indonesian sanctions, India is exploring alternative channels for the supply of palm oil.
duty can be deducted
According to sources, India is also likely to engage with Indonesia, the world’s largest exporter of palm oil, through diplomatic channels and hold bilateral talks on the export ban at the global level. A government official told Mint, “We have alternative edible oils available, but the real concern is about prices. For that we can cut duty. Agriculture cess may be cut to stabilize edible oil prices. However, the ban by Indonesia is likely to be reversed within a few weeks.
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India is the largest importer of palm oil
India is the largest importer of palm oil from Indonesia. It imports around nine million tonnes of palm oil annually and the commodity accounts for more than 40% of India’s total edible oil consumption basket. Experts say that if an alternative source is not found, the price of edible oil could almost double.
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No relief even after reducing the cess!
A finance ministry official told Mint that the reduction in cess will not help bring down edible oil prices, as prices have risen sharply. Sources said, “There is now a very small cess of only 5% on edible oil imports. We doubt that scrapping it will have a significant impact on prices.” Apart from this, the government may also launch a consumer awareness campaign asking people to consume less palm oil and switch to alternative oils. Is.