India lowers import duty to reduce edible oil prices, Malaysia, Indonesia, etc. raise prices

- Consumption of edible oil is so high that mineral oil is the third largest consumer after gold.

- RBI's calculation of inflation related to rising food prices goes wrong

To reduce the price of edible oils, India has reduced its import duty from 5.5 per cent to 12.5 per cent. On the other hand, major edible oil producers Malaysia, Indonesia, Brazil, Argentina and Russia have increased their edible oil prices accordingly. In addition, prices of other food items have risen sharply. As a result, the daily 'budget' of the average Indian has been disrupted. Not only that, but the Reserve Bank's inflation target has also been disrupted.

India spends as much on imports as on oil and gold imports. Third is the cost of edible oil imports. An important reason for this is that edible oil is used more in India than in any other country in the world.

Atul Chaturvedi of The Indian Solvent Extractors Association (ISEA) says that in this regard, India has reduced import duty (on edible oil) or almost immediately the world's edible oil producing countries have increased it proportionately. Therefore, the consumer cannot get the benefit of reduction in import duty.

Tariff on edible oil in India 19-10-21 and announced on Wednesday which will continue till March 203. The Government of India has announced five tariff cuts on vegetable oil from February 15 to 10 this year. But consumers cannot benefit from the increase in edible oil prices by edible oil producing countries.

India has the highest consumption of edible oil than any other country. India produces 11 million tonnes of edible oil in the country every year.

Its annual demand is 25 million tonnes. As a result, 12 million tonnes of edible oil has to be imported every year.

The import duty on edible oil in India also depends on the type of oil. Which is about 2.5 per cent on the most expensive coconut oil. While on soybean it is about 3%.

Surprisingly, edible oil prices in India have risen by 30 per cent in the last one year alone. For instance, the price of Rayda oil in August last year was Rs. 150 which in August this year increased to Rs. 150 has been done.