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The central government has extended the reduced import duty regime for some of the key edible oils by a year as it makes interventions to keep food inflation in check.
The reduced duty, which was set to end in March 2024, will continue till March 2025, an official notification from the government showed. The basic import duty on refined soyabean oil and refined sunflower oil was reduced from 17.5 per cent to 12.5 per cent. The basic import duty is an important factor that impacts the landed cost of edible oils which in turn affects domestic prices. Reduction in import duty will benefit the consumers, as it will help in easing domestic retail prices. India is the world's second-largest consumer and number one vegetable oil importer, and it meets 60 per cent of its needs through imports. A large part of it is palm oil and its derivatives, which are imported from Indonesia and Malaysia. India majorly consumes mustard, palm, soybean, and sunflower-derived edible oils. Retail inflation in India rose at its fastest pace in three months in November, largely due to a spike in food prices. Food inflation, which accounts for nearly half of the overall consumer price basket, was 8.70 per cent in November, against 6.61 per cent reported the previous month. Prices of cereals rose by 10.27 per cent and vegetables by 17.7 per cent in November on a year-on-year basis. Pulses were up by 20.23 per cent, spices by 21.55 per cent and fruit prices were up 10.95 per cent last month, official data released by the Ministry of Statistics and Programme Implementation showed. (ANI)
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