Edible oil can be cheap, the government is preparing to take this step

Government can reduce agri cess.

Indonesia has banned the export of palm oil, due to which its price is rising rapidly. To curb the rising price in India, the government is considering to cut the agri cess.

edible oil ,edible oil price) is expected to get relief from the sky’s price. Government cess on import of edible oil (Cess on edible oil import) is considering reduction. This will bring down the price and people will get relief. India used to import half of its oil requirement from Indonesia. Indonesia suddenly stopped exports of palm oil and crude palm oil (Indonesia bans palm oil export) was banned, due to which there has been an uproar in India. Due to increase in demand and decrease in supply, there is a sharp jump in the price. According to a Mint report, the Ministry of Consumer Affairs is preparing to reduce the agri cess of 5 percent on edible oil imports.

After Indonesia, India imports oil from Malaysia the most. However, Malaysia is already showing its inability to supply to its old customers. In such a situation, new options are also being searched. According to the report, India is also holding diplomatic talks with Indonesia. Indonesia is the largest palm oil exporter in the world. His latest decision has stirred the whole world.

40 percent palm oil in India’s overall requirement

Regarding the edible oil crisis, the officials concerned told Mint that there are other options for edible oil in their country, but the matter of concern is the price. Agriculture cess cut can be decided to control the price. India is the largest importer of palm oil from Indonesia. Every year it imports about 9 million tonnes of palm oil from Indonesia. This is close to 40 percent of India’s overall requirement. Experts say that if the government does not look for alternatives in time, then the price of edible oil may double in the coming days.

Not much relief from waiving agri cess

According to the Finance Ministry, there is a cess of only 5 percent on oil imports. Even if it is waived, the price will not be affected much. Another official said that the government can run an awareness program in which people can be appealed to shift to other oils instead of palm oil.

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Possible effect on the price of Rs 2-3 per liter

Madan Srinivas, Chief Economist, Bank of Baroda, said that if the agri cess is cut, the retail price may come down by Rs 2-3, but it will not work. Compared to 2020, the price of edible oil has increased by Rs 60-100 per liter.