New Delhi, Sep 14 (FN Bureau) Seeking to curb edible oil imports and boost farmer income, the government has increased import duty on crude and refined edible oils by 20% with effect from September 14. With these amendments in the duty rates, the effective import duty on crude palm oil, crude soybean oil, and crude sunflower oil has gone up from 5.5% to 27.5%. As per the official notification, import duty on refined palm oil, refined soya oil, and refined sunflower oil has been increased to 35.75% from 13.75% earlier. Meanwhile, the government has also removed the minimum export price condition for onions and basmati rice, making exports of the key agricultural items more competitive globally. The decisions have also come ahead of the crucial assembly elections in Haryana, Jammu and Kashmir, Maharashtra, and Jharkhand. “On one hand, these decisions will increase the export of Basmati rice and onion, while on the other hand, the import of edible oils will decrease. These decisions taken by the Modi government will increase the production and sale of our food producers and consumers will also be assured of full benefits,” Commerce and Industry Minister Piyush Goyal said.
The government has removed the minimum export price condition for onions, making exports of the key agri item more competitive globally. “The Minimum Export Price (MEP) condition on Export of onions is removed with immediate effect and until further orders,” said a notification from the Directorate General of Foreign Trade (DGFT) on September 13.
The government had in May this year lifted a ban on onion exports but imposed a minimum export price of US$ 550 per metric tonne. Commerce and Industry Minister Piyush Goyal said that now, with the removal of the condition of MEP and the export duty being reduced from 40% to 20%, more quantity of onion can be exported. “This decision, which will increase the income of farmers and exporters, will give a huge boost to trade in the agricultural sector,” the minister said in a post on ‘X.’ The government has done away with the minimum export price of Basmati rice with a view to enhance income of farmers. “It has been decided to remove current Minimum Export Price (MEP) of USD 950 per metric tonne for issuing Registration-cum-Allocation Certificates for export of Basmati rice,” Ministry of Commerce and Industry said in a communication to the Agricultural and Processed Food Products Export Development Authority (APEDA). It also asked APEDA to take immediate action to implement the decision to remove the MEP on export of Basmati rice. It said that APEDA will closely monitor export contract for any non realistic prices for Basmati exports, the ministry added.