Government- Edible Oil Prices: In order to control rising edible oil prices due to the ongoing war between Ukraine and Russia and Indonesia’s decision to ban the export of palm oil, the Indian government could reduce the tax on certain edible oils. The government can take the decision to reduce the tax on imported edible oil. In fact, edible oil prices are already on fire and there are fears that they will rise further in the coming days. This is the reason why the government can reduce the tax on edible oils.
Agricultural tax can be reduced on edible oil
It is believed that the 5% agricultural tax on crude palm oil can be reduced to zero to relieve ordinary people of expensive oil. The oil industry for expensive edible oils is also troubled. This is why the industry has asked the government to reduce import duties on canola oil from 38.5% to 5.5%. So that the importation of canola oil can begin.
India has the highest consumption of edible oil,
India imports half of its edible oil consumption from Indonesia. However, the Ministry of Consumer Affairs said that despite Indonesia’s ban, there is a sufficient amount of edible oil in India. The ministry said the government is monitoring edible oil prices and all necessary measures will be taken to keep prices under control.
Indonesia increased problems
After Indonesia’s decision to ban the export of palm oil, 2,90,000 tons of edible oil arriving in India are stuck in the Indonesian port and oil mill. Indonesia has banned crude palm oil and refined palm oil, which could lead to a shortage of vegetable oil in India. In fact, Indonesia has banned the export of palm oil from April 28, 2022. Indonesia is one of the largest producers of palm oil, while India is one of the largest importers of the world’s largest edible oil – especially palm oil and soybean oil.
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